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. 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

Increases in tofu prices lead to a leftward shift in the supply curve, resulting in higher prices and lower quantity. Health concerns regarding animal products can cause a rightward shift in demand for vegan food, raising both price and quantity. Veganism's rise may significantly influence farming methods, the food industry, and international trade policies in coming years.

Step-by-step explanation:

When analyzing the impact of a sudden increase in prices for tofu products, you would expect the supply curve to move to the left, creating a new supply curve labeled S2. The resulting new equilibrium would be at a higher price and a lower quantity than the initial point, reflecting decreased supply.

In the case of a health threat via animal products, the demand for vegan food might increase as consumers seek safer alternatives, shifting the demand curve to the right and being labeled D3. The new equilibrium in this scenario would be at a higher price and a higher quantity, indicating increased demand.

Over the next 5-20 years, the rise in veganism could significantly affect various aspects of society. The shift could lead to more efficient and sustainable farming practices, potentially changing the landscape of animal husbandry. Additionally, the food industry might offer a more diverse range of products to cater to a growing market, possibly affecting international trade as demand for plant-based food sources grows globally. These shifts could drive political initiatives for a more sustainable food system.