The Demand Curve Shifts

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Presentation transcript:

The Demand Curve Shifts Econ Chapter 4

Individual Demand Demand Can Increase or Decrease Individual Demand An Increase in Demand Means a Movement of the Line P 6 5 4 3 2 1 Individual Demand P Qd $5 4 3 2 1 10 20 35 55 80 Price (per bushel) D2 Decrease in Demand D1 D3 Q 2 4 6 8 10 12 14 16 18 Quantity Demanded (bushels per week)

Determining Factors Income: Normal Goods Inferior Goods Neutral Goods Consumer Taste

Related Goods Substitute Goods Complements

Other Factors Number of Buyers Future Expectations

Δ Consumer Tastes

Assignment: You will create a Demand Curve and illustrate a shift of the curve (increase or decrease) Requirements: 1. Properly labeled graph: Axes, Title 2. Be sure to use arrows to show the direction of your shift, and label the curves D1 and D2 3. You MUST write an explanation for the shift, and identify the DETERMINANT

Assignment: If the LAST DIGIT of your phone number is— 1. Candy Bars 2. Robots 3. Books 4. Movie Tickets 5. Stuffed Animals 6. Pizza 7. Donuts 8. Tacos 9. Music Downloads 0. Cups of Coffee

The 5 Determinants, Again: 1. Income 2. Consumer Taste 3. Cost of Related Goods (Substitutes/Complements) 4. Number of Customers in the Market 5. Future Expectations