DEMAND and SUPPLY FUNDAMENTALS: Shifts in Demand or SupplyName ___Chad Magers__________ 1 [worth 50 points]If in doubt, explain your choice with a sentence of two.Variables typically included in a multivariate demand function (other than the price and quantity of the item thedemand function represents) are consumer tastes and preferences, the number of buyers, spendable(disposable) income, prices of substitute goods, prices of complementary goods, advertising expenditures,weather, and expectations.Recalling that the price of the item being considered is placed on the vertical axis,and the quantity on the horizontal axis, the other variables are termed demand shifters.Please answer thefollowing questions about the affect changes in other variables might have on thedemandfor the item.Thesechanges will either cause demand toincrease(shift right) ordecrease(shift left).Use either word asapplicable, for the short answer.1.If the price of a substitute good decreases relative to the price of the item being considered, demand for
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