Supply and Demand
Not what you're looking for?
The milk industry has a number of interesting aspects. Provide economic explanations for the following:
a. Fluid milk is 87% water. It can be dried and reconstituted so that it is almost indistinguishable from fresh milk. What is a likely reason that such reconstituted milk is not produced?
b. The US has regional milk-marketing regulations whose goals are to make each of the regions self-sufficient in milk. What is the likely reason for this.
c. A US Senator from a milk-producing state has been quoted as saying, "I am absolutely convinced...that simply bringing down dairy price supports is not a way to cut production." Is it likely that he is correct? What is a probably reason for his statement?
Purchase this Solution
Solution Summary
This answer provides you an excellent discussion on Supply and Demand
Solution Preview
The milk industry has a number of interesting aspects. Provide economic explanations for the following:
a. Fluid milk is 87% water. It can be dried and reconstituted so that it is almost indistinguishable from fresh milk. What is a likely reason that such reconstituted milk is not produced?
The cost of drying and reconstituting milk will increase the cost of milk such reconstituted milk, however, the price of such milk will be lower than normal fresh milk. Consumers prefer to buy fresh milk. As the demand for fresh milk is higher than such reconstituted milk, milk is not dried and reconstituted. ...
Education
- BSc , University of Calcutta
- MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
- "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
- "Thank you kindly sir. "
- "Excellent and well explained. --Thank you kindly. "
- "Awesome notes. I appreciate you."
- "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.