A major food technology company successfully scales the production of high-quality oat-based milk alternatives, leading to a 40% reduction in consumer demand for traditional dairy milk.
Which one of the following is most likely to be correct?
The demand for breakfast cereal will rise because cereal and dairy milk are in joint supply.
The demand for dairy cattle feed will fall because the demand for animal feed is derived from the demand for dairy milk.
The demand for almond milk will fall because almond milk and dairy milk are in joint demand.
The supply of beef will fall because beef and dairy milk are in competitive demand.
256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.