Answer:
The supply curve for strawberry-flavored milk will go up.
Explanation:
When the company has decided to cut down on the production of chocolate-flavored milk and increase the production of strawberry-flavored milk it certainly had its own reasons. The primary reason for such a move was most probably changes in demand, with the demand for chocolate-flavored milk going down, while the demand for strawberry-flavored milk going up.
With the increased production of strawberry-flavored milk, the supply curve for it will experience changes, manifested through rising, or rather the curve will move up. There can be several reasons as to why the demand for this type of milk has increased, but the two most probable ones are different preferences in taste among newer and emerging clientele, and maybe an emerging trend in the society.
Answer:
Being reliant on just one thing to drive the economy is a problem because even minor changes can lead to serious problems, so a solution is to develop other business sectors on time.
Explanation:
Most of the countries in the Middle East have their economies almost exclusively reliant on just one thing, that being the oil. They do possess some of the largest oil reserves in the world, but even though everything is going great with the trade of it for now and obtaining enormous amounts of money, that can easily change.
Being reliant on just one industry that is dependent on a single natural resource is a huge risk. If there are just slight changes in the price or demand goes down the economy immediately suffers badly. With the trend of the developed countries to gradually move away from fossil fuels, the Middle Eastern countries may soon face a huge economic problem. In order to try and prevent such a scenario, they can simply start to develop other business sectors, high profile ones that bring in lots of money, such as banking and tourism, so when the time comes that the oil is not so popular anymore, they will have other sectors that will drive their economy.
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