Figure 3
The set contains two side-by-side line graphs titled “Impulse response functions of retail 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. Both graphs have 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: retail price”. A dark gray line labeled “Shock: positive; Response: processing price”. A medium gray line labeled “Shock: negative; Response: retail price”. A light gray line labeled “Shock: negative; Response: processing price”. In the left graph titled “Impulse response functions of retail price shocks”, the black line starts at 1 at week 0, rises slightly during the first 5 weeks, and stabilizes at 1.2 for the rest of the weeks. The dark gray line starts at 0 at week 0, rises sharply above 0 within the first 5 weeks, then stabilizes at 1 for the rest of the weeks. The medium gray line starts at negative 1 at week 0, declines below negative 1 during the first 5 weeks, then gradually rises and stabilizes at 0 for the rest of the weeks. The light gray line starts at 0 at week 0, dips slightly below negative 0.5 during the first 5 weeks, then gradually rises and stabilizes at 0 for the rest of the weeks. 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 1.8 at week 15 to 50. The dark gray line starts at 1 at week 0, dips slightly during the first 5 weeks, then rises steadily and stabilizes at 1.4 for the rest of the weeks. The medium gray line starts at 0 at week 0, dips slightly below negative 0.2 during the first 5 weeks, then gradually rises and stabilizes at 0 for the rest of the weeks. The light gray line starts at negative 1 at week 0, rises sharply toward 0 during the first 5 weeks, then stabilizes at 0 for the rest of the weeks. Note: All data values are approximated.Impulse response functions of retail and processing price shocks