The market will adjust to it in the sense that since that because of the

The market will adjust to it in the sense that since

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quantity will be 125 units. The market will adjust to it in the sense that since that, because of the drought that has evidently caused the quantity supplied to reduce by 45 cartons a day at each price. Therefore, in order to compensate on this damage, suppliers increased the price from $1.50 to $1.75 anticipating that the price will later fall in the future and thus, this effect will stabilize prices by preventing them from rising too much and thereby reaching a point or rather state of equilibrium. D) There will be a greater supply of milk which will in turn catalyze a greater quantity demanded, which further then lead to a rise in the equilibrium price. QUESTION THREE (3) A) They are Substitutes. These are interchangeable goods and thus, they compete against each other. However, good A will be demanded more or better will be at higher demand because consumers will respond to that slight change I good B and thus an increase in the price of good B will force the consumers to switch to good A which will increase its demand.
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