Exercise 1: Identifying the determinants of demand. In worksheet 5B, you have seen have how an increase in demand is depicted on a graph by a shift in the demand curve. • When the demand curve shifts upward and to the right, this is indicative of an increase in demand. • When the demand curve shifts to the left, this is indicative of a decrease in demand. • Factors that result in a change in demand are the determinants of demand. Working as a part of a team of three or four, complete the table below. For each determinant of demand: • indicate whether demand will increase or decrease; • provide an explanation as to why. Determinant of demand Demand Explanation increases or decreases? Population increases Population decreases Increase in most peoples' income Decrease in most peoples' income Price of substitute inereases Price of substitute decereases Price of complementary good increases Price of complimentary good decreases Product becomes a popular fad (change in taste of buyers) Product now out of fashion (change in taste of buyers) There is an expectation that the price of the product will soon fall There is a fear that the economy will go into a recession where many firms will fail and unemployment will increase
Exercise 1: Identifying the determinants of demand. In worksheet 5B, you have seen have how an increase in demand is depicted on a graph by a shift in the demand curve. • When the demand curve shifts upward and to the right, this is indicative of an increase in demand. • When the demand curve shifts to the left, this is indicative of a decrease in demand. • Factors that result in a change in demand are the determinants of demand. Working as a part of a team of three or four, complete the table below. For each determinant of demand: • indicate whether demand will increase or decrease; • provide an explanation as to why. Determinant of demand Demand Explanation increases or decreases? Population increases Population decreases Increase in most peoples' income Decrease in most peoples' income Price of substitute inereases Price of substitute decereases Price of complementary good increases Price of complimentary good decreases Product becomes a popular fad (change in taste of buyers) Product now out of fashion (change in taste of buyers) There is an expectation that the price of the product will soon fall There is a fear that the economy will go into a recession where many firms will fail and unemployment will increase
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:1:36
l 4G
Shifts on Demand Curve- Pract...
Worksheet 5C
Exercise 1: Identifying the determinants of demand. In
worksheet 5B, you have seen have how an increase in demand is
depicted on a graph by a shift in the demand curve.
• When the demand curve shifts upward and to the right, this
is indicative of an increase in demand.
• When the demand curve shifts to the left, this is indicative of
a decrease in demand.
• Factors that result in a change in demand are the
determinants of demand.
Working as a part of a team of three or four, complete the table
below. For each determinant of demand:
• indicate whether demand will increase or decrease;
• provide an explanation as to why.
Determinant of demand
Explanation
Demand
increases or
decreases?
Population increases
Population decreases
Increase in most peoples' income
Decrease in most peoples' income
Price of substitute increases
Price of substitute decreases
Price of complementary good
increases
Price of complimentary good
decreases
Product becomes a popular fad
(change in taste of buyers)
Product now out of fashion (change
in taste of buyers)
There is an expectation that the price
of the product will soon fall
There is a fear that the economy will
Igo into a recession where many firms
will fail and unemployment will
increase
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