Between 2006 to 2007 the price of skimmed milk powder on the world market rose from 1000$ per ton to 24000$ per ton. Assuming that the market is a free market what will result from the price change? A)Consumers will buy more complements to skimmed milk powder.
B)Farmers will increase the size of their dairy herds to supply more milk.
C)Firms processing milk into skimmed milk will switch to producing substitutes.
D)Government will introduce a system of rationing.
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