Angie Copy of Q4-Online Demand Course

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California State University, San Marcos *

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MISC

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Economics

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Jan 9, 2024

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docx

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5

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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. Please pause if you would like to work with classmates on this section.
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