Tuesday/Wednesday April 5/6

Intro to Demand Notes

Periods 1 and 2 complete the below questions

For each of the scenarios:
    A.  Sketch a rough demand curve for each of the scenarios below and graph the demand change with a dotted line and label the curves.

    B.  Identify the reason for the demand change (i.e. substitute effect, income effect, etc.)

C.      Identify as increase or decrease in demand

1.        What happens to the demand for Oranges if my paycheck becomes larger due to decreased taxes?

2.        What happens to the demand for Cotton clothing

           if Polyester becomes a big fad.

3.        What happens to the demand for Hot Dog Buns

          if hot dogs are determined to be cancer causing.

4.        What happens to the demand for live Gold fish if

          people learn to like the flavor of live goldfish

5.        What happens to the demand for Coke if the cost

          of the ingredients is Pepsi increases so much

         that Pepsi must raise its cost by 50% while

        Coke prices stay the same.

6.        What happens to the demand for Milk if the price

         of cereal falls to an all time low.

7.        What happens to the demand for Pepsi if

           Pepsi changes their recipe and many of

           the consumers don’t like it.