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/ Product - Hamburgers Event - The price of steak increases EXAMPLE ANSWER/ Demand increases - Curve shifts right - Price of substitutes Salt - The price of salt doubles.        2. Sunscreen - Summer approaches. 3. Big Macs - The population in the United States increases by 20%.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter5: Markets In Motion And Price Controls
Section: Chapter Questions
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  1. 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/ Product - Hamburgers Event - The price of steak increases

EXAMPLE ANSWER/ Demand increases - Curve shifts right - Price of substitutes

  1. Salt - The price of salt doubles.       

2. Sunscreen - Summer approaches.

3. Big Macs - The population in the United States increases by 20%.

4. Rock Salt - It snows 8 inches over night

 

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