Question

You notice that milk is now selling for much higher prices than in the past. Which two things would you expect to happen next? (Select two answers.)

Demand will go up.
Demand will go down.
Supply will go down.
Supply will go up.

Answer 1

Demand will go down and supply will go up.

Explanation:

When the price of a product goes up by a large amount, demand typically goes down. This is because people are unwilling to pay the increased price.

When demand goes down, the supply goes up.

Answer 2

Demand will go up and supply will go down