1. Draw the supply and demand curves for frozen yogurt. Show equilibrium.

2. Show and explain what will be the first thing that will happen in the market for frozen yogurt when each of the following occurs. Please show the original curves and the change so that it is clear what the change is.

• Price of frozen yogurt increases
• Rent for the frozen yogurt store decreases
• Price of milk increases
• The government determines that frozen yogurt is hazardous to your health.

Answer rating: 100% (QA)

1 The supply and demand curves for frozen yogurt are shown below where E is the equilibrium ... View the full answer