Milk has an expiration date. If you increase the supply of milk beyond the consumption of milk the price will fall as milk approaches its expiration date.
So the wholesale price of milk drops, then the grocer has milk they can buy cheap and if they can get rid of it in time make a profit. The consumer given a choice between expiring milk and new milk will buy new milk so the price on older milk is discounted to incentivize buying before it expires.
So yes rather than have an expired product the retailer will lower their prices. Like right now you can get egg nog half price at sobeys because it expires this week.
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