Question

Read the article "The Year of the Vegan: Where millennials lead, businesses and governments will follow," John Parker, The Economist, 2019.The article is added on the very top of the DB. 2. Draw a diagram with Demand (D1) and Suppy (S1) curve intersecting at initial equilibrium point. The initial equilibrium point reflects the demand and supply for vegan food in 2015. The diagram should have a horizontal axis (Years) and vertical axis (% vegan food, as part of the entire food market). Display a Shift of Demand or Supply. Note: You don't need specific values to draw a general digram displaying Shifts in Demand or Supply. Display the initial D1 and S1 and the observed or predicted Shift in Demand or Supply. For reference on similar Shifts of Demand and Supply curves, review a sample diagram that represents chocolate candy bars on bottom page 101 (3rd edition) and top-right of the page (4th edition), where the initial equilibrium is at the intersection of S1 and D1. 3. State the new equilibrium, if there is sudden increase in prices for tofu products on the market. Label the new supply curve S2, and the new demand curve D2, as needed. 4. State the new equilibrium, if there is a health threat of wide-spread disease transferred through animal products. Label the new supply curve S3 and the new demand curve D3, as needed. 5. Discuss in a paragraph, your personal opinion on how veganism might affect and change farming and animal husbandry, environmental awareness, the food industry, the cost of food, and international trade. How these changes might affect the business and political environment in the next 5-10 to 20 years to come?

Answer 1

The shifting market for vegan food can be analyzed using supply and demand curves, showing the impact of changes like price increases for tofu or health concerns associated with animal products. Over time, the rise of veganism can significantly affect environmental awareness, farming practices, the food industry, international trade, and the political landscape.

Step-by-step explanation:

To examine the effects of a shifting market for vegan food from 2015 onwards, we can draw a supply and demand diagram, with Year on the horizontal axis and the percentage of vegan food in the entire food market on the vertical axis. At the initial equilibrium (E1), we represent the intersection of the initial demand curve (D1) and initial supply curve (S1). If there is a sudden increase in prices for tofu products, which are a staple in vegan diets, the supply for these products would decrease, illustrated by a leftward shift of the supply curve from S1 to S2. The new equilibrium (E2) would occur at the point where the demand curve D1 intersects the new supply curve S2.

If there were a health threat from a widespread disease transferred through animal products, this may increase demand for vegan foods. We would show this as a rightward shift of the demand curve from D1 to D3. The new equilibrium (E3) would then be determined by the intersection of supply curve S1 and this increased demand curve D3.

In my opinion, the rise in veganism can have a profound impact on various aspects of the economy and environment. Environmental awareness is bolstered as individuals learn about the ecological footprint of meat production. The food industry evolves to accommodate the increasing vegan market, thereby influencing international trade and agricultural practices. Farming and animal husbandry may see a shift towards plant-based crop production or more humane animal treatment standards to differentiate products. In the next 5-20 years, these changes could reshape business and political landscapes, potentially leading to new regulations and shifts in global market dynamics, especially if the vegan trend continues as millennials and younger generations carry these values forward.