THIS PIECE OF ECONOMICS WILL BLOW UR MIND

[Wut]

If people want more cheese, the prices for yogurt and ice cream go up.

Think about it, i'll post the answer tomorrow.

 

[Wut]

In bidding for cheese, ice cream, and yogurt, consumers are in effect also bidding indirectly for milk from which these products are produced. In other words, money that comes in from sales of these products is what enables the producers to again buy milk to use to continue making their respective products. When the demand for cheese goes up, cheese-makers use their additional revenue to bid away some of the milk that before went into making ice cream or yogurt, in order to increase the output of their own product to meet the rising demand. When the cheese-makers demand more milk, this increased demand forces up the price of milk----to everyone, including the producers of ice cream and yogurt. As the producers of these other products raise the prices of ice cream and yogurt to cover the higher cost of the milk that goes into them, consumers are likely to buy less of these other dairy products at these higher prices.
How will each producer know just how much milk to buy? Obviously they will buy only as much milk as will repay its higher costs from the higher prices of these dairy products. If consumers who buy ice cream are not as discouraged by rising prices as consumers of yogurt are, then very little of the additional milk that goes into making more cheese will come from a reduced production of ice cream and more will come from a reduced production of yogurt.

fucker

 

[Wut]

//offtopic admin me on your research website pls

find me a bangbros or nubiles acc and we got a deal