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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 PCs 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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- Spring '07