What would the equilibrium graphs look like?

Question

what would the possible graphs look like for this article? i don't know how to graph them or label them.

https://www.marketwatch.com/story/impossible-foods-beyond-meat-see-spike-in-demand-as-coronavirus-wreaks-havoc-on-meat-supply-2020-05-05

Answer 1

Hi Sammie,

Here we have an example of meat and beyond meat acting as substitute goods. Substitute goods are commodities that can be used interchangeably. When the supply of meat goes down, the demand for beyond meat goes up because consumers are using beyond meat as a substitute for normal meat.

To explain graphically, you would draw two supply/demand graphs - one for meat and one for beyond meat. Label them as you would normally, price on the y axis and quantity on the x axis. On the meat graph you would decrease supply by shifting the supply line left and on the beyond meat graph you would increase demand by shifting the demand line right.