https://www.bbc.comews/business-58659478

https://www.bostonglobe.com/2022/02/19ation/why-are-beef-prices-so-high-some-ranchers-white-house-say-its-more-than-just-inflation/

Read the two articles. Draw a supply and demand graph of the US market for beef. Label all axes and curves and clearly indicate the equilibrium price and quantity. Then answer questions in the picture.

4. The following questions are based on the diagram that you drew in #3 and on the articles that you read. For each of the specific events described below, show how the market for beef will be affected. In each case, assume nothing else changes. Draw a new graph for each part. Be sure to identify whether or not the demand and supply curves shift, or whether you are moving along the original demand and supply cuwes. If there is a shift in the demand or supply curve, you should clearly label the original curve as D1 or 51 and the new curve as D2 or 52. Describe the changes in equilibrium price and quantity in words. If the answer is ambiguous, explain why. Wanner? (2 points each) Consumers' incomes increase. A decrease in the price paid to ranchers for live cows by the meatpacking industry A shift in consumers' preferences towards vegetarian and vegan diets. A global pandemic causes several meat-packing facilities to close. A labor shortage in slaughterhouses Increased consolidation in the meat industry through mergers and acquisitions leads to a reduction in the number of firms processing and selling beef. A global pandemic causes consumers to stock up on meat and meat products, at the same time that several meat-packing facilities are facing labor shortages. The government succeeds in encouraging hundreds of new firms to enter the meatpacking and processing industry in different towns and cities across the country. 5. According to both articles, the profits of the four largest meatpackers have tripled, despite the rise in beef prices by about 16 percent over the past year. a. What does this information tell you about the elasticity of demand for beef and beef products in the US? Clearly explain your answer. (3 points) b. An economist computed the elasticity of demand for beef in different countries. Given your answer to part 'a', which of the following estimates comes closest to her estimate for the US? Explain your answer. (3 points) - 0.4 - 1.4 - 4.1 - 40 c. Do you think the supply of beef is elastic or inelastic? Explain your answer. (3 points)