1. As part of its Carbon Reduction Strategy, the Federal Government has decided that Canada must take

action to reduce its production of methane gas, a harmful greenhouse gas. One of the major producers

of methane gas is the beef industry, as the methane gas is emitted by cattle. To accomplish its goal,

the government has launched an extensive advertising campaign to encourage Canadians to put more

soya products in their diet and eat less beef.

The Beef Council of Canada upon hearing of this move, launched its own high profile advertising

campaign featuring international chefs and celebrities endorsing the tastiness and versatility of eating

and cooking with beef.

An additional part of the Federal Government's plan to reduce methane gas is to provide a cash

subsidy to soya bean farmers to grow more of this desirable protein substitute. The Soya Bean

Growers Association of Canada has advised its members to accept this subsidy, but only as an income

supplement to counteract the rising rate of inflation.

a) What will be the impact on equilibrium price, supply, and demand for beef because of the Federal

Government's advertising campaign and the Beef Council's advertising campaign? Explain with the

use of a graph. (4 marks)