question archive Dairies make low-fat milk from full-cream milk

Dairies make low-fat milk from full-cream milk

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Dairies make low-fat milk from full-cream milk. In the process of making low-fat milk, dairies produce cream, which in turn makes ice cream. In the market for low-fat milk, the following events occur:

a) The wage of dairy worker rises

b) The price of cream rises

c) The price of low-fat milk rises

d) A new technology lowers the cost of producing ice cream

e) Dairy farmers switch some of the production of full-cream to vegetables, based on input from health research studies.

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