Problem
A. Tofu was available in 1977 only from small businesses operating in Chinese quarters of large cities. By 2003 tofu had become famous as a high-protein health food and was widely available in supermarkets throughout Canada. At the same time, production had evolved to become factory-based using modern food processing technologies. Draw a diagram with demand and supply curves depicting the market for tofu in 1977 and the need for tofu in 2003. What does the model predict about the price and quantity of tofu over time?
B. In Canada there is a universal health care system that provides "free" care to citizens and prevents doctors and hospitals from charging user fees. Users of the system face large delays in receiving care and often are on wait-lists for months. On the other hand, there is no universal dental or animal care in Canada, and no such wait-lists exist to see a dentist or a veterinarian. Why would universal free care lead to people having to wait?