The question is as follows:

1. Dairies make low-fat milk from full-cream milk, and in the process, they produce cream, which is made into ice cream. Suppose the following events occur one at a time. With the relevant diagram, explain the effects on supply of or demand for low-fat milk. a. The wage rate of dairy workers rises. b. The price of ice cream increases. c. The price of low-fat milk rises. d. With a drought forecasted, dairies raise their expected price of low-fat milk next year. e. New technology lowers the cost of producing ice cream