Question
Consider the following demand/supply schedules for Whey Protein Powder, used to build muscle in weight training... Price (P)................ Quantity demanded..................Quantity Supplied................Surplus/Shortage ($/Pound)(Pounds/month)(Pounds/month) 40.00.................................0.............................................. 600 35.00...............................100.............................................500
- Consider the following demand/supply schedules for Whey Protein Powder, used to build muscle in weight training...
Price (P)................ Quantity demanded..................Quantity Supplied................Surplus/Shortage
($/Pound)(Pounds/month)(Pounds/month)
40.00.................................0.............................................. 600
35.00...............................100.............................................500
30.00............................... 200............................................400
25.00................................300............................................300
20.00.................................400...........................................200
15.00..................................500...........................................100
10.00..................................600..............................................0
Questions:
- Draw a diagram of the market for Whey protein powder, showing the demand and supply curves.
- What is the equilibrium price and quantity of Whey powder exchanged in the market?
- Suppose that the local health store decides to charge $20 per pound for Whey powder? Is there a surplus or shortage at this price? Explain. How would the market price adjust as a result?
- Explain how each of the following changes would affect either the demand side or supply side of Whey protein powder. Draw a separate diagram for each case and show the effect on equilibrium price and quantity...
- There is an increase in income (all else equal)
- The price of whey used to produce the protein powder, increases (all else equal)
- Gyms reopen after Covid-19 is under control (all else equal)
- There's a decrease in the price of Soy protein powder, a substitute in consumption for Whey protein powder (all else equal)
- There's an increase in the price of whey protein powder (all else equal)
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