PAGES_14_AND_15

PAGES_14_AND_15 - lfllffféf ffl meangf A change in...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: lfllffféf ffl meangf A change in demand is a shift of the entire curve. A change in demand may be caused by W anything other than a change in the price of that particular good: *5. What is a Change in Demand? a. Changes in consumer income A decrease in consumer income, will shift demand to the left. An increase in consumer income, will shift demand to the right. *Example: How would a recession affect the demand for luxury cars? Me i m Ad deé e @W ngfie iv fie What happens to price and quantity sold? (we will come back to this) “ N {in Q( b. Changes in the number of consumers in the market An increase in the number of consumers will shift demand to the right. An decrease in the number of consumers will shift demand to the left. 5 *Example: The migration of Mexicans from Mexico to the United States will Ma’ffift the demand for Corona Beer in the United States. e priMiller Lite increases, people will buy Mad Bud Light. The firiéceiqffgd Light will lncflfig (we will come back to this) a i is; What happens on the Miller Lite demand curve? upwwd max/rm”) A aim} file Wng Macroeconomics Test 1 Packet (Calhoun) — Fall 2010 *Example: Two goods are substitut ' an increase in the price of the first good, leads to a/an increas /decreasg) in demand for the second good. implementary Goods —— As the price of pot increases, the demand for Taco Bell Weak. The price of Taco Bell will l . (we will come back to this) Example: An in the price of hamburgers will do what to the demand for hamburger buns? act wage *Example: Two goods are complements if an in rease in the price of the first good, leads to a/an ‘ ([email protected] in demand for the second good. cl. Changes in expectations. lf future prices are expected to be higher, then demand shifts to the right. *Example: The prices of stocks listed on the Dow are at historically low levels which means future prices are expected to be higher. The demand for stocks should harem . If future prices are expected to be lower, then demand shifts to the left. Haflém “’ {iglc‘l ifflag Tl'v be lawgf’ g $0 alcmamd damage; e. Changes in demographics. A larger number of senior citizens in the population will increase the demand for Depends and nursing homes. A larger number of college students in the population will increase the demand for adderall and condoms. Macroeconomics Test 1 Packet (Calhoun) — Fall 2010 @ ...
View Full Document

This document was uploaded on 11/01/2011 for the course ECO ECO2013 at FSU.

Page1 / 2

PAGES_14_AND_15 - lfllffféf ffl meangf A change in...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online