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Reasons for Changes in Demand Part A Read the eight newspaper headlines in Figur

ID: 1148032 • Letter: R

Question

Reasons for Changes in Demand Part A Read the eight newspaper headlines in Figure 102, and use the table to record the impact, if any, each event on the demand for beef. Use the first column to the right of the headline to show whether the event causes a change in demand. Use the next column to record wheth or a decrease in demand. In the third column, decide whether the demand curve shifts left or ri Finally, write the letter for the new demand curve. Use Figure 10.1 to help you. Always start at curve 5, and move only er the change is an increase ght. one curve at a time. One headline implies that the demand for beef does not change. Figure 10.1 Beef Consumption in May QUANTITY Figure 10.2 Demand If Demand Curve Shifts New Shift? (Y/N) Shifts, Inc/Dec? Left/Right? Curve Headline 1. Price of Beef to Rise in June 2. Millions of Immigrants Swell U.S. Population 3. Pork Prices Drop 4. Surgeon General Warns That Eating Beef Is Hazardous to Health 6. Real Income for U.S. Drops for 7. Charcoal Shortage Threatens 8, Nationwide Fad: The Disco-Burger 5. Beef Prices Fall; Consumers Buy More Third Month Memorial Day Cookouts

Explanation / Answer

Price of beef to rise in June

Immigration

Pork prices drop

Warning by SG

A

BEEF PRICE FALL, CONSUMER

BUY MORE

OHeadline demand shift If demand shifts inc or dec Curve shift New curve

Price of beef to rise in June

Y(people will buy more in current period) Increase Right B

Immigration

Y(more demand) Increase Right B

Pork prices drop

Y( substitute good) DEC LEFT A

Warning by SG

Y(CGE age in tatste and preferences) DEC LEFT

A

BEEF PRICE FALL, CONSUMER

BUY MORE

Y INC RIGHT B REAL IMCOME FOR US DROPS NO CHARCOAL SHORTAGE NO(no direct link with beef market) THE DISCO BURGER If the burger is made of beef. It will push up the demand. Increase Right B