shifts in demand worksheet\ndirections: for each scenario, draw the demand for the good in parentheses…

shifts in demand worksheet\ndirections: for each scenario, draw the demand for the good in parentheses. then, based on what is written in the scenario, shift the demand - graph appropriately. be sure to label the original demand curve as \d1\ and the shifted demand curve as \d2\ and draw arrows to show if the demand curve shifted to the right or left. label the axes on the graph. then, write what the determinant of demand is.\n1. at every grocery store in the area, the price of hot dogs has been at an all - time high (hot dog buns).\n2. the price of televisions will increase two months from now (televisions).\n3. a news article on trans fats potential harm to peoples health was in the sunday newspaper (kfc).\n4. lance armstrong is featured in an ad for sport chalets workout clothes (sport chalet workout clothes).\n5. the weatherman on the morning news predicts it will be a rainy next few weeks (sunglasses).\n6. margarine is on sale (butter).

shifts in demand worksheet\ndirections: for each scenario, draw the demand for the good in parentheses. then, based on what is written in the scenario, shift the demand - graph appropriately. be sure to label the original demand curve as \d1\ and the shifted demand curve as \d2\ and draw arrows to show if the demand curve shifted to the right or left. label the axes on the graph. then, write what the determinant of demand is.\n1. at every grocery store in the area, the price of hot dogs has been at an all - time high (hot dog buns).\n2. the price of televisions will increase two months from now (televisions).\n3. a news article on trans fats potential harm to peoples health was in the sunday newspaper (kfc).\n4. lance armstrong is featured in an ad for sport chalets workout clothes (sport chalet workout clothes).\n5. the weatherman on the morning news predicts it will be a rainy next few weeks (sunglasses).\n6. margarine is on sale (butter).

Answer

Brief Explanations:

  1. Hot dog buns and hot dogs are complements. When hot - dog prices are high, demand for hot - dog buns decreases (left - shift). Determinant: Price of related goods.
  2. Expecting a future price increase of televisions, current demand increases (right - shift). Determinant: Expectations of future prices.
  3. Negative publicity about trans - fat in KFC may lead to decreased demand for KFC products (left - shift). Determinant: Consumer tastes and preferences.
  4. Lance Armstrong's endorsement may increase demand for Sport Chalet workout clothes (right - shift). Determinant: Consumer tastes and preferences (celebrity endorsement).
  5. With rainy weather predicted, demand for sunglasses decreases (left - shift). Determinant: Weather (a form of consumer tastes and preferences related to conditions).
  6. Margarine and butter are substitutes. When margarine is on sale, demand for butter decreases (left - shift). Determinant: Price of related goods.

Answer:

  1. Demand curve for hot dog buns shifts left. Determinant: Price of related goods.
  2. Demand curve for televisions shifts right. Determinant: Expectations of future prices.
  3. Demand curve for KFC products shifts left. Determinant: Consumer tastes and preferences.
  4. Demand curve for Sport Chalet workout clothes shifts right. Determinant: Consumer tastes and preferences.
  5. Demand curve for sunglasses shifts left. Determinant: Weather.
  6. Demand curve for butter shifts left. Determinant: Price of related goods.