Figure 2
The set contains two side-by-side line graphs titled “Impulse response functions of farm price shocks” on the left and “Impulse response functions of processing price shocks” on the right. Both graphs display weeks on the horizontal axis, ranging from 0 to 50 in increments of 10 weeks. The left graph has a vertical axis ranging from negative 6 to 4 in increments of 2 units. The right graph has a vertical axis ranging from negative 2 to 2 in increments of 1 unit. Each graph contains four lines: A black line labeled “Shock: positive; Response: farm price”. A dark gray line labeled “Shock: positive; Response: processing price”. A medium gray line labeled “Shock: negative; Response: farm price”. A light gray line labeled “Shock: negative; Response: processing price”. In the left graph titled “Impulse response functions of farm price shocks”, the black line starts at 1 at week 0, dips slightly at week 5, then gradually rises and stabilizes at 2 between week 30 and 50. The dark gray line starts at 0 at week 0, rises steadily above the black line, and stabilizes at 3 between week 30 and 50. The medium gray line starts at negative 1 at week 0, declines gradually, and stabilizes at negative 2.8 by week 50. The light gray line starts at 0 at week 0, declines more sharply than the medium gray line, and stabilizes at negative 3.9 by week 50. In the right graph titled “Impulse response functions of processing price shocks”, the black line starts at 0 at week 0, rises steadily, and stabilizes at 0.6 between week 15 and 50. The dark gray line starts at 1 at week 0, declines slightly during the first 10 weeks, then gradually rises and stabilizes at 0.9 between week 30 and 50. The medium gray line starts at 0 at week 0, declines steadily, and stabilizes at negative 0.9 by week 50. The light gray line starts at negative 1 at week 0, rises briefly to negative 0.4 during the first 5 weeks, then declines steadily and stabilizes at negative 1.2 by week 50. Note: All data values are approximated.Impulse response functions of farm and processing price shocks