Bloomberg: “The Vegan Economy Has Arrived”
Run Time: 3:56
Although only 6 percent of the U.S. identifies as vegan, animal-free foods like meatless burgers and veggie-based snacks have exploded in popularity recently. This video looks at why the animal alternative market could grow into a $140 billion industry as consumers include more vegan foods in their diets.
Discussion Questions:
1. In what ways can switching to a vegan diet be viewed in the context of positive externalities (or perhaps a reduction in negative externalities)? Explain.
2. What kind of market structure best characterizes the plant-based burger market? With expected increase in demand for plant-based burgers, how would economists expect the market to develop in the next few years? Explain.
3. Assume the beef industry is characterized by perfect competition and is initially in long-run equilibrium. Suppose growth in vegan diets affect the meat industry by causing a 20% decrease in the demand for beef. How does this affect the owners and employees of cattle farms in the short run and long run? Explain.