The demand and supply schedules for Groovy Greek Yogurt are shown below for a given grocery store...

Price (P)................................Quantity Demanded............................................Quantity Supplied

($/tub) (Per month) (Per month)

$3.00..........................................200...............................................................................0

3.25..........................................175..............................................................................25

3.50..........................................150..............................................................................50

3.75..........................................125..............................................................................75

4.00..........................................100..............................................................................100

4.25............................................75..............................................................................125

4.50............................................50..............................................................................150

4.75............................................25..............................................................................175

5.00.............................................0................................................................................200

Questions:

(a)Draw a diagram of the market demand and supply curves for Groovy Greek Yogurt (2marks)

(b)What is the equilibrium price and quantity of Groovy Greek Yogurt? (2 mark)

(c)If the grocery store sets the price of this yogurt at $4.75per tub,what will be the condition of the market? Explain. How will the price, quantity demanded and quantity supplied adjust as a result? Please explain... (3 marks)

(d) Explain how each of the following changes will affect either the demand or supply curve forGroovy Greek Yogurt.

Also show the effect on equilibrium price and quantity...

(i) There is an increase in the price ofFabGreek Yogurt, a substitute for Groovy Greek Yogurt (all else equal) (2 marks)

(ii) Consumers expect the price of Groovy Greek Yogurt to fall tomorrow due to a sale (all else equal) (2 marks)

(iii) There is an increase in the price of milk, used to produce Groovy Greek Yogurt (all else equal) (2 marks)

(iv) There is an increase in the price of Groovy Greek Yogurt (all else equal) (2 marks)

(v) Facebookfeatures an advertisement with movie star "The Rock" eating Groovy Greek Yogurt (all else equal) (2 marks)