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Analyzing Demand Scenarios
For the following milk market scenario, identify the type and cause of change.
Scenario 1: The price of milk increases from $3.50 to $4.50 per gallon.
1. Based on Scenario 1, the demand curve for milk
A. shifts to the right.
B. shifts to the left.
C. does not shift.
2. Based on Scenario 1, movement occurs
A. up the demand curve for milk.
B. down the demand curve for milk.
C. There is no movement.
3. Based on Scenario 1, there is
A. a change in demand for milk.
B. a change in the quantity demanded of milk.
4. Based on Scenario 1, which factor caused the change in quantity demanded of milk?
A. A change in consumer expectation
B. A change in consumer tastes or preferences
C. A change in the number of consumers in the market
D. A change in consumer income
E. A change in the price of a substitute good
F. A change in the price of a complementary good
G. A change in the price of milk
Scenario 2: The price of breakfast cereal increases.
1. Based on Scenario 2, the demand curve for milk
A. shifts to the right.
B. shifts to the left.
C. does not shift.
2. Based on Scenario 2, which factor caused the change in demand for milk?
A. A change in consumer expectation
B. A change in consumer tastes or preferences
C. A change in the number of consumers in the market
D. A change in consumer income
E. A change in the price of a substitute good
F. A change in the price of a complementary good
G. A change in the price of milk
Analyzing Demand Scenarios
Scenario 3: A new health study shows reduced cancer risks for milk drinkers.
1. Based on Scenario 3, the demand curve for milk
A. shifts to the right.
B. shifts to the left.
C. does not shift.
2. Based on Scenario 3, which factor caused the change in demand for milk?
A. A change in consumer expectation
B. A change in consumer tastes or preferences
C. A change in the number of consumers in the market
D. A change in consumer income
E. A change in the price of a substitute good
F. A change in the price of a complementary good
G. A change in the price of milk
Scenario 4: The economy sinks into a recession, causing incomes of many Americans to decrease (assume
milk is a normal good).
1. Based on Scenario 4, the demand curve for milk
A. shifts to the right.
B. shifts to the left.
C. does not shift.
2. Based on Scenario 4, which factor caused the change in demand for milk?
A. A change in consumer expectation
B. A change in consumer tastes or preferences
C. A change in the number of consumers in the market
D. A change in consumer income
E. A change in the price of a substitute good
F. A change in the price of a complementary good
G. A change in the price of milk
Scenario 5: A lower birth rate reduces the number of children, a key milk-drinking market.
1. Based on Scenario 5, the demand curve for milk
A. shifts to the right.
B. shifts to the left.
C. does not shift.
2. Based on Scenario 5, which factor caused the change in demand for milk?
A. A change in consumer expectation
B. A change in consumer tastes or preferences
C. A change in the number of consumers in the market
D. A change in consumer income
E. A change in the price of a substitute good
F. A change in the price of a complementary good
G. A change in the price of milk
Short Answer Response: (must be typed)
List three factors that could affect the demand for tablet computers. In your response explain each factor and
whether it would cause the demand curve to shift to the right or to the left and why.