Unit 1: Increasing costs and the effect on prices

Two French food companies are raising the cost of their dairy products because of high milk prices according to this BBC clip
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7040000/newsid_7041000?redirect=7041029.stm&news=1&bbwm=1&nbram=1&nbwm=1&bbram=1&asb=1 >

a) Using a S&D diagram, explain how an increase in the price of milk leads to an increase in the price of dairy products in the shops