Using Economic Concepts: In 2004, the price of U.S. butter imports increased by more than 30 percent compared to the previous year. In 2003, Canada and New Zealand together supplied more than 80 percent of the butter imported into the United States. In 2004, their combined market share decreased to about 67 percent.
What happened in the market to cause this change?
How did price serve as a signal and incentive to producers?