New Zealand dairy prices increase
Read the article Dairy product prices to rise despite milk freeze and then answer the questions below. You can either read the article in the window below or you can follow the previous link to read the article in a separate window.
Identify the key determinants of demand for dairy products in New Zealand.
Using diagrams, as appropriate, explain the changes that have taken place in the market for dairy products.
Analyse the likely impact of the increase in the price of milk on
- pizzas and
- soya milk and other milk substitutes.
Discuss the extent to which manufacturers of dairy products will be able to pass on the increased costs to consumers in the form of higher prices.