Soybean can be used to produce soymilk and biodiesel fuel that could reduce emissions by 41% compared with regular
diesel fuel. Analyze the market for soymilk that experiences the following shocks. Suppose that (1) price of biodiesel fuel rises
by 15 percent. At the same time, (2) researchers find that soy products contain large quantities of natural toxins that cause serious
gastric distress, reduced protein digestion and chronic deficiencies in amino acid uptake in the human body and contain
haemagglutinin that causes red blood cells to clump together. Use graph (1) below to illustrate the effects of (1) and use graph (2)
to illustrate the effect of (2). Please label the axes and curves, and mark important points on the graph. What would be effect if
both shocks (1) and (2) occur simultaneously?
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