The August 30, 2019 issue of the Wall Street Journal had a story “Ravenous China Could Spice Up U.S. Meat Stocks” about the devastating effects of the outbreak of African swine fever. You do not need to read the story, this paragraph from the article tells you all you need to know:
“By July, the number of hogs in China – by far the world’s largest pork consumer – was close to a third lower than a year earlier, according to official statistics. And the situation may be even worse than headline figures imply: A June report from Reuters suggested that as many as half of China’s breeding pigs may have died or been slaughtered.”
Graphically depict the market for hogs in China, assuming that the demand curve slopes down and the supply curve slopes up. This is purely an analysis of the impact of African swine fever. It is true that trade wars between the U.S. and China are significant, but for this analysis, we are just looking for the impact of the deadly swine fever independent of any other external shocks to the Chinese pork production industry.
Upload a graph showing supply, demand, and the equilibrium price and quantity in the market for pork before the swine fever outbreak and any changes to the supply and/or demand as well as the equilibrium price and quantity after the swine fever. Please provide a narrative explaining what happens in the market for pork and the impact of African swine fever on the market.
(Both a graph and a narrative are needed for this question.)