When milk prices increased in 2008, one milk consumer stated that the reason he cut down on milk consumption was so that he could drive his car. This action represents a:

Question

Quizplus · Accepted Answer

The statement suggests that the consumer decreased their consumption of milk due to higher prices, which is a movement along the demand curve for milk. The movement is caused by the change in the price of milk and its impact on the consumer's purchasing decisions. A shift of the demand curve would occur if there were a change in any other factor affecting the quantity of milk demanded, such as a change in consumer preferences or income. Similarly, a shift in the supply curve would happen due to a change in any other factor impacting the quantity of milk supplied, such as changes in technology or input costs.

When Milk Prices Increased in 2008, One Milk Consumer Stated