6. In 2008, the price of corn increased by 35 percent and some cotton farmers in Texas stopped growing cotton and started to grow corn.

a. Does this fact illustrate the law of demand or the law of supply? Explain your answer.

b. Why would a cotton farmer grow corn? Use the following information to work Problems 7 to 9. Dairies make low-fat milk from full-cream milk. In the process of making low-fat milk, the dairies produce cream, which is made into ice cream. In the market for low-fat milk, the following events occur one at a time: (i) The wage rate of dairy workers rises. (ii) The price of cream rises. (iii) The price of low-fat milk rises. (iv) With the period of low rainfall extending, dairies raise their expected price of low-fat milk next year. (v) With advice from health-care experts, dairy farmers decide to switch from producing full-cream milk to growing vegetables. (vi) A new technology lowers the cost of producing ice cream.