Question

A U.S. business sells milk to consumers in France. Which situation would most likely cause demand for milk to rise in France?

Answer 1

A situation that would most likely cause demand for milk to rise in France is French consumers expect the price of milk to increase in the future.

What causes an increase in the demand for a product?

The demand for a product is affected by:

• future expectations
• change in the price of other goods
• Change in the income of consumers

When it is expected that the price of a product would increase in the future. Consumers would want to buy the product now when it is cheaper so as to save money.

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