It is never as easy as that. Law of supply and demand is not a linear function and externalities count too. Also, most of the markets are somehow captive. I do

It is never as easy as that. Law of supply and demand is not a linear function and externalities count too. Also, most of the markets are somehow captive. I doubt that people will drink much more milk because it is cheaper. What happens is that supermarkets don't care if they loose money with one product because what counts is the average of the basket. So what happens is that milk producers will pay the price of a marketing operation.