Given demand and supply for strawberry yogurt as shown in the table below

Price in ($)

Quantity of strawberry yogurt demanded per day (units)

Quantity of strawberry yogurt supplied per day (units)

0.5

400000

120000

0.75

380000

140000

1

360000

160000

1.25

340000

180000

1.5

320000

200000

1.75

300000

220000

2

280000

240000

2.25

260000

260000

2.5

240000

280000

2.75

220000

300000

3

200000

320000

3.25

180000

340000

3.5

160000

360000

3.75

140000

380000

4

120000

400000

Instructions:

1.Using excel, find the equilibrium price and quantity of strawberry yogurt, show the point on the graph. (6 marks)

2.If people taste changes in favor of strawberry yogurt that increases the demand by 40,000 units at every price.

a)Find the new equilibrium price and quantity.

b)Show the shift of the demand curve on the graph.

3.Starting from the original equilibrium If there is an improvement in technology that increases strawberry yogurt production by 20,000 units at every price.

a)Find the new equilibrium price and quantity.

b)Show the shift on the graph.