Questions on Milk: Markets, Prices, and Price Setting

Statistics show that milk consumption is on the rise in the United States since the

            However, if the school allows a competing student the right to sell ice cream on school property, it could change the price of ice cream. The price of ice cream is lowered due to technology.  The invention of better ice cream machines or an idea to make better use of counter space can lower a firm’s cost and raise the quantity of ice cream it supplies.  Prices could also be increased due to input prices. Less ice cream is supplied when workers need be paid more, therefore ice cream machines cost more, or even ingredients like

4) For each article describe causes of changed price and the effects of the changed price.

#5. Other things equal, what effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects on the equilibrium price level and the level of real output.

2. Total revenue falls as the price of a good is raised, if the demand for the good is ( )

Law of Supply: Price and quantity has a direct relation, when price increases, quantity also increases. When the price of oranges increases, farmers

milk as a loss leader, grocery stores can bring in more customers because milk is a necessity

The likely impact on food prices in the United States if the supply of oranges were reduced, and the consumption of corn for fuel was to increase, would be to expect an increase in food prices. When events such as a deep freeze happen and the result is a decrease of supply the market will experience an increase in the equilibrium price if all other things remain consistent. If the president called for an increase in ethanol produced from corn, the supply of corn available to provide as food will decrease, and the decrease

According to Investopedia.com baby boomers are people born between 1946 and 1964. I think that an aging population of “Baby Boomers” in the United States will shift the demand curve to the left. The reason for it is that during this period the amount of children who needed milk dramatically increased. It, in turn, led to increase of amount of needed milk at any price and as a result shifter demanded curve to the right. When this large population became older the consumption of milk decreased since adults do not consume so much milk and because not all of them had their own children, meaning

What happens to the equilibrium price and quantity after these changes are put into effect? Do they go up, down or stay the same?P:_____down_____________Q:_____down__________________

In this case the issue is whether or not the “Filled Milk Act” passed by Congress is in line with the commerce clause and the due process limits. It is the power of the legislative contested here. To put it in other way, can Congress to limit “Carolene Products CO’s” right to do commerce enshrined in article one of the constitution?

We observe that the equilibrium price of coffee falls and the equilibrium quantity falls. Which of the following best fits the observed data?

b. Suppose the price for the ice cream is currently $5. Will this price result in a shortage or a surplus? How much is the shortage or surplus? What would you expect to happen to price?

Using appropriate diagrams, discuss how an increase or an improvement in the following non-price determinants of supply would change equilibrium prices and quantities.

Brennan's Farm produces and sells milk. The market for milk is perfectly competitive. The market price of milk is $2.50 per gallon. The relationship between the farm's output and total costs is shown in the table above.