1 According to a professor at the University of Massachusetts Amherst, plant-based foods are "a really hot topic at the moment". Irregular shopping habits that began during the pandemic, with panic buying and supply-chain issues, have also pushed more people to buy plant-based milk. Despite strong demand for basic foods like dairy products amid the coronavirus pandemic, the milk supply chain has seen a host of disruptions that are preventing dairy farmers from getting their products to market. Plant milk sales in the United States totaled $2.5 billion at the end of 2020, accounting for 15% of all retail sales of milk, and 35% of the larger market for plant-based foods. By the end of 2026, Olson said, sales of dairy alternatives are projected to make up 30% of all milk sales. Much of that growth, Purcell said, will come from small-batch producers. i. ii. iii. iv. Illustrate and explain the effect of the increased use of plant-based milk on (i) the dairy market and (ii) the overall milk market. [6 marks] Explain how the supply chain issues affected the dairy market and describe how this would be corrected without the introduction of the plant-based alternative. Provide a graphical representation. [5 marks] Is demand for (i) dairy milk and (ii) milk overall elastic or price inelastic? Explain your reasoning. [4 marks] Given the current market conditions, list and explain ONE strategy that dairy producers could implement to increase revenue. [4 marks]