"Dairy farmers have faced a crash in milk prices amid the coronavirus pandemic in the last month when restaurants, workplaces and schools shuttered across the country. Many dairy operations have even dumped their cows' milk as the initial splash of athome consumption has tapered off and the restaurant industry has nearly disappeared (nbcnews April 14, 2020)".

a. With reference to the news quoted above and with the help of a demand-supply diagram, briefly explain why price of milk drops. (8 marks)

b. Butter is a by-product in the production of milk. With reference to the news quoted above and with the help of a demand-supply diagram, briefly explain how the coronavirus pandemic may affect the market equilibrium price and quantity of butter. (7 marks)

c. If you were a dairy farmer, should you shut down your production of milk during the coronavirus pandemic? Please briefly explain your answer. (10 marks)