Question

1) Must be stapled. I will not accept any loose sheets 1) Identify non-price factors that would cause the demand curve to move right or left. 2) Next, draw (individual graphs) indicating how each of the following non-price factors would cause the change in demand curve (shift right, shift left), price (P) and quantity (Q). You need to draw a market equilibrium curve (i.e. both the demand and supply) for each of the following before you can shift the demand curve Market 1. Oranges 2. Cars 3. Cars 4. Gym Membership 5. Arthritis medication Change A new diet consisting of eating six oranges a day becomes the latest diet fad. Consumers' income rises. The price of gasoline doubles. The price of personal exercise equipment increases. The number of elderly citizens increases.

Answer 1

" he non demand curve U change il change li change i Change rice factors that causes shift in the are as follows: in income of the consumer. in the price of related goods in tastes and preferences of the consum in expectations about future price of good trice A-3 1. Oranges. This will shift demand curve rightwards and increase both equilibrium price and equilibrium Quantity 4. 2. Cars: shift demand curve rightwards yo el od one because car is a Normal good. increasing equilibrium price and Quantity. 3. Cars: Increase in the price of Is complementary goods reduces demand v o and leads to reduction in price and Quantity of cars. Quantity - - This will make gym membership costly and this reduce equilibrium price and quantity, due to fall in demand. a bu As elderly citizens increases demand for Arthritis medication increases increasing equilibrium price and Quantito of medication