The chemical firm Bayer developed a weed killer called dicamba. Dicamba is particularly useful in killing weeds in fields planted with soybeans that have been engineered to be immune to the compound. Some farmers who plant soybeans that are not immune to dicamba complain that when the compound dries, it can be blown onto their fields, damaging their crops. The farmers who use dicamba argue that it reduces their cost of growing soybeans.

a. First, assume that dicamba causes no significant damage to the crops of farmers growing soybeans that are not immune to the compound. Use a demand and supply graph to show the effect of dicamba on the market for soybeans. 

b. Now assume that dicamba causes damage to the crops of farmers growing soybeans that are not immune to the compound. On your graph from part (a), show the effect of using dicamba. Be sure to carefully label all curves and all equilibrium points. 

c. In your graph in part (b), what has happened to the efficient level of output and the efficient price in the market for soybeans compared with the situation before dicamba was introduced? Can you be certain that the efficient level of output and the efficient price have risen or fallen as a result of farmers using dicamba? Briefly explain.