In the following scenarios, you will be given a product and an event. Determine what will happen to the demand for the product based on the event, what happens to the demand curve, and give the non-price determinant that caused it to occur. (chose from the 7 determinants listed in the notes). The first one is answered for you as an example. Example a. Product - Hamburgers Event - The price of steak increases Example answer a. Demand increases - Curve shifts right - Price of substitutes b. Gym memberships Society becomes more health conscious. c. Golf Balls The price of golfing increases. d. Spam (Inferior good) There is an decrease in people’s salaries. e. Pepsi The price of Coke decreases dramatically. f. Steak Incomes fall due to the recession g. Hair dye Hair dye is successfully advertised in the media. h. Computer software The price of computers goes down. i. Salt The price of salt doubles. j. Sunscreen Summer approaches. k. Big Macs The population in the United States increases by 20%. l. Rock Salt It snows 8 inches over night
- In the following scenarios, you will be given a product and an event. Determine what will happen to the
demand for the product based on the event, what happens to the demand curve, and give the non-price determinant that caused it to occur. (chose from the 7 determinants listed in the notes). The first one is answered for you as an example.
Example a. Product - Hamburgers Event - The price of steak increases
Example answer a. Demand increases - Curve shifts right - Price of substitutes
b. Gym memberships Society becomes more health conscious.
c. Golf Balls The price of golfing increases.
d. Spam (Inferior good) There is an decrease in people’s salaries.
e. Pepsi The price of Coke decreases dramatically.
f. Steak Incomes fall due to the recession
g. Hair dye Hair dye is successfully advertised in the media.
h. Computer software The price of computers goes down.
i. Salt The price of salt doubles.
j. Sunscreen Summer approaches.
k. Big Macs The population in the United States increases by 20%.
l. Rock Salt It snows 8 inches over night
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