Final answer:
An increase in the price of chocolate milk represents a decrease in the quantity demanded of chocolate milk, as consumers are less likely to purchase the same amount at a higher price.
Step-by-step explanation:
An increase in the price of chocolate milk represents a decrease in the quantity demanded of chocolate milk. According to the law of demand, as the price of a good rises, the quantity demanded of that good falls, assuming all other factors remain constant. This is because consumers typically have a limited budget and as the price of a good increases, they are less able or willing to buy the same amount as before, leading to a downward movement along the demand curve which reflects a decrease in quantity demanded.
For option 1, an increase in the price of chocolate milk would indeed lead to a decrease in its quantity demanded. Option 2, a decrease in the price, would increase the quantity demanded according to the law of demand. Option 3 and 4 are discussing changes in the quantity supplied, not the quantity demanded, and thus are not correct in this context.