Answer to Question #233850 in Microeconomics for Ezintle Ganyile

Question

If there is s strike in the milk prof industry then ceter paribus?.
A. The demand for milk will increase
B. Demand for the milk will increase
C. The supply for milk will decrease
D. Supply for milk will increase

Answer 1

Correct question:

Answer:

If there is a strike in the milk production industry, then, cetaris paribus:

 b. the demand for milk will decrease

Cetaris Paribus means 'All things being equal'. It is influenced by numerous factors such as availability of cows, milk suppliers, transportation and others. If there is a strike in the milk production industry then the prices of milk are likely to increase. According to cetaris paribus, if prices of milk increases people will purchase less milk so, demand of milk will decrease. Availability of milk affects a customer's desire to buy more or less milk.