From 2006 to 2007, the world-market price of skimmed milk powder increased from $1000 per tonne to $2400 per tonne. If the market is a free market, what outcome will follow from this price change?
- AConsumers will buy more complements to skimmed milk powder.
- BFarmers will increase the size of their dairy herds to supply more milk.
- CFirms processing milk into skimmed milk will switch to producing substitutes.
- DGovernments will introduce a system of rationing.