Question

Twenty-five years ago, tofu was available only from small businesses operating in predominantly Asian sections of large cities. Today tofu has become popular as a high-protein health food and is widely available in supermarkets throughout the United States. At the same time, tofu production has evolved to become factory-based using modern food-processing technologies Using the graph below, show how the tofu market has changed over the last 25 years. Instruction: Click on and drag one or both of the lines below to depict the changes in supply and/or demand in the tofu market. Market for tofu 0 Q* Quantity (poundslyear) reset

Answer 1

An increase in the demand will shift the demand curve to the right and and increase the price but an increase in the supply of the good will decrease the price of the good. but the quantity of the goods in the market will increase.

A shift in the demand curve shows the increase in the demand and a shift in the supply curve shows the increase in the supply of the goods because more firm are producing it. An increase in the demand will shift the demand curve to the right and and increase the price but an increase in the supply of the good will decrease the price of the good. but the quantity of the goods in the market will increase. The equilibrium quantity of Tofu will increase. The price of the Tofu can be higher, lower, or the same as 25 years ago.

b) The equilibrium quantity of Tofu will increase.

c) The price of the Tofu can be higher, lower, or the same as 25 years ago.