Answer:
1. Input Prices. Milk is one of the inputs for making an ice cream. If the cost of the milk goes up then the profit per ice cream sale will go down.
Explanation:
The higher price of ice cream will make milk producers supply more milk to ice cream manufacters as they would be willing to pay higher price for milk. Thus the equilibrium quantity and price of ice creams produced will reach a new level where the demand will be equal to supply .
