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Posted: April 10th, 2022

Explain graphically how this market would be affected

Hormone free dairy milk has been found to be potentially more beneficial and healthy. consider the market for this product in South Africa and answer the questions that follow.

Question 1) explain and show graphically how this market would be affected if South Africans choose to be more healthy.

Question 2) explain and show graphically how this market would be affected if there is an increase in the number of dairy farmers that produce hormone-free milk and at the same time south african consumers choose to be more healthy

Question 3) if the income elasticity of demand for hormone free milk is estimated at +5.0, briefly define what this value means and what it implies about the nature of the product

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