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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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