(a)[4]
- Compare the average milk price paid to farmers in the US in August 2008 with the figure for August 2009. [2]
- How far does Fig. 1 indicate that milk prices are affected by regular seasonal influences? [2]
(b)[6]
- Compare how milk prices changed in the US and in New Zealand between 2007 and 2009. [2]
- Explain two possible reasons why milk prices are at different levels in the US and New Zealand. [4]
(c)[4]
Explain how one group, other than dairy farmers, would be harmed by lower milk prices and how another group would benefit from lower milk prices.
(d)[6]
Discuss the arguments for using government subsidies in milk production.