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Issue of the wall street journal

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Based on the article "Global Meat Companies Feast on China's Pig Problems" from the May 3, 2019 issue of the Wall Street Journal, please respond to the following questions:

(a) Illustrate, using a supply/demand diagram, what effect the swine fever in China will have on hog prices. Label the original equilibrium price and quantity as P0 and Q0, respectively and then identify the new equilibrium price and quantity as P1 and Q1.

(b) Identify and describe the factor(s) or determinant(s) that appears to be important in explaining the new equilibrium outcome. Explain how your answer affects the supply/demand diagram for hogs.

(c) Using a separate supply and demand diagram for pork sausage, show what effect higher hog prices would have on sausage prices and output, holding all else constant. Explain your answer.

(d) Given your answer in c, how might the market for brat buns be affected?

(d) Based on this article, using a separate supply and demand diagram, show what might happen in the market for chicken as a result of the swine fever problem. Explain.

Reference no: EM132313376

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