Imagine that the amount of milk being purchased in the United States suddenly decreased.

Question
Which of the following is the most likely cause?
Responses

increased price of milk
increased price of milk

increased supply of milk
increased supply of milk

decreased demand for milk
decreased demand for milk

decreased competition for milk

1 answer

The most likely cause of a sudden decrease in the amount of milk being purchased in the United States would be decreased demand for milk.

This is because a decrease in demand would directly lead to a reduction in the quantity of milk purchased, independent of any supply factors. Increased prices of milk might lead to a decrease in quantity demanded, but that would typically be a response to the change in price rather than the cause. Increased supply would usually lead to lower prices and potentially an increase in quantity demanded, while decreased competition would typically not lead to a decrease in demand but could affect prices instead.