Angie Copy of Q4-Online Demand Course
.docx
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School
California State University, San Marcos *
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Course
MISC
Subject
Economics
Date
Jan 9, 2024
Type
docx
Pages
5
Uploaded by DukeUniverse6135
Law of Demand Online Course
Part 1: Learn
Click
HERE
to access the online course on Demand from the Federal Reserve Bank of Atlanta. As you
progress through the course, please answer the questions on the doc below.
Note that while I expect your answers to be similar to the source or identical for certain questions, if
there is indication of plagiarism from a peer or the source you will receive a zero, a referral and a phone
call home.
Make good choices people!
1.
Describe the two components of
Demand.
Based on this definition, what is an
example of something you have a
demand for?
Answer right----->
The two components of Demand are willingness to buy
an item/how bad you want a good or service and if the
individual has the ability to pay for the item.
An example of something I have a demand for is a
body kit for my car.
2.
Explain the law of demand in your own
words.
Answer right----->
The law of demand is when the quantity of a good or
service demanded by consumers will decrease as the
price of that good or service increases, and vice versa.
If the price of a product goes up, people will generally
buy less of it, and if the price goes down, people will
generally buy more of it
3.
Go to
Try This: A Demand Curve for
Chocolate Bars.
What happens to price and quantity
demanded when there is downward
movement along the demand curve?
Answer right----->
When there is downward movement along the
demand curve, price decreases and quantity
demanded increases.
4.
What happens to price and quantity
demanded when there is upward
movement along the demand curve?
Answer right----->
When there is an upward movement along the
demand curve, price increases and quantity
demanded decreases
5.
Go to:
What Causes the Demand Curve
to Shift?
Read through the descriptions of the
1.
Dwight hears there will be a big sale on
BattleStar Galactica shirts on Cyber Monday. He
decides to wait to buy his new shirt since he
expects prices to be lower in the future than they
determinants of demand on the online
course.
Create a scenario that represents an
example of each of the
determinants(shifters) of demand.
Please reference the example I provided
and those provided by the online
source.
Answer right----->
are right now. (A Change in Consumer
Expectations)
2.
Lindsey discovered new health benefits to
chocolate and although the price has remained
the same, she is more willing to buy a lot of
chocolate (Change in Consumer Preferences)
3.
Ben and his friends are huge Hershey lovers so
when they visited the Hershey’s store, the
demand increased and the price remained the
same (Change in the Number of Consumers in
the Market)
4.
Fred got a stimulus check from the government
so he used that money to buy extra fruit roll ups
(Change in Income)
5.
Ella usually buys strawberries but the price for
blueberries have been cut in half. She now buys
blueberries instead (A Change in the Price of a
Substitute Good)
6.
The price of jelly increased so the demand
decreased which results in the demand of
peanut butter decreasing because they are
complementary goods (A Change in Price of a
Complementary Good)
6.
What is the difference between a
change in demand vs. a change in
quantity demanded?
Answer right----->
A change in demand is when the demand for a good
or service changes because something other than
price is affecting market changes. A change in
quantity of demand is when the price changes so the
demand changes.
7.
Go to
Try This: Change Demand and
Shift the Demand Curve.
When you shift the demand curve to the
right, what happens to the quantity
demanded at any given price?
Answer right----->
When shifting the demand curve to the right, the
quantity demanded increases.
8.
When you shift the demand curve to the
left, what happens to the quantity
demanded at any given price?
Answer right----->
When you shift the demand curve to the left, the
quantity demanded decreases
Page 2 is a Knowledge Check on Demand.
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Homework(Ch 13)
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Scooter's Scooters is a large American manufacturer of electric scooters operating out of Fort Collins. Currently, the company produces all of its
scooters using a single manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or two
additional factories. The following table presents the manufacturer's monthly short-run average total cost (SRATC) for various levels of production if it
operates out of one, two, or three factories. (Note: Q equals the total quantity of scooters produced by all factories.)
Average Total Cost
(Dollars per scooter)
Number of Factories Q = 100
Q = 200
Q = 300
= 400
Q = 500
Q = 600
1
360
200
160
240
400
720
.
2
540
300
160
160
300
540
3
720
400
240
160
200
360
Suppose…
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