The price of milk increases. Which of the following is NOT part of the likely chain of events that follows from this price change?
A)Some milk consumers reduce their consumption of milk.
B)Milk producers increase their production of milk.
C)The producers of feed for dairy cows increase production.
D)The manufacturers of milking machines lay off some workers.

Question

Quizplus · Accepted Answer

The increase in price of milk would lead to milk producers increasing their production to meet the demand and to maintain their profits. The producers of feed for dairy cows would increase production in order to meet the higher demand for livestock feed. Some milk consumers may reduce their consumption, as they may find the higher prices unaffordable. However, there is no reason for the manufacturers of milking machines to lay off workers due to an increase in the price of milk, as this does not directly affect their industry.

The Price of Milk Increases