Unformatted text preview: • Change in price of related goods • Change in consumer expectations • A shift in the Market Demand Curve: Called an “Increase in Demand” or a “Decrease in Demand” • Ex: Income goes up => demand • “Normal Goods”- as income goes up, football tickets go up • “Inferior Goods”- as income goes up, ramen noodles go down • Ex: Taste and preference goes down => demand Changes in the Price of Related Goods • If the price of a Mac falls, the quantity will go up. Therefore, the whole demand curve for PC’s will shift down. These are substitutes • If the price of peanutbutter goes up, the quantity demanded will go down. Therefore, the whole demand curve for jelly will shift down. These are complementary goods. Changes in Consumer Expectations • If there is an expected snow storm, there is a shift in demand up for bread and milk at grocery stores...
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This note was uploaded on 03/30/2008 for the course AAEC 1006 taught by Professor Mjellerbrock during the Spring '07 term at Virginia Tech.
- Spring '07