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  • Unit 1 Economics WS 1

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    Tomi Borinaga
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    This document provides three scenarios and asks the reader to illustrate how consumer demand changes in each using a graph, and to explain the reason for the change using factors like price, income, preferences/advertising, expectations, or price of related goods. Scenario 1 describes increased demand for sunglasses, sunblock and beach chairs due to expected sunny holiday weather. Scenario 2 describes increased demand for cars, electronics and clothing due to government tax rebate checks raising consumer income. Scenario 3 describes decreased demand for an older video game console due to the announcement of a new upcoming console version.

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    UNIT 1 ECONOMICS WS 1

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    This document provides three scenarios and asks the reader to illustrate how consumer demand changes in each using a graph, and to explain the reason for the change using factors like price, income, preferences/advertising, expectations, or price of related goods. Scenario 1 describes increased demand for sunglasses, sunblock and beach chairs due to expected sunny holiday weather. Scenario 2 describes increased demand for cars, electronics and clothing due to government tax rebate checks raising consumer income. Scenario 3 describes decreased demand for an older video game console due to the announcement of a new upcoming console version.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    23 views1 page

    Unit 1 Economics WS 1

    Uploaded by

    Tomi Borinaga
    This document provides three scenarios and asks the reader to illustrate how consumer demand changes in each using a graph, and to explain the reason for the change using factors like price, income, preferences/advertising, expectations, or price of related goods. Scenario 1 describes increased demand for sunglasses, sunblock and beach chairs due to expected sunny holiday weather. Scenario 2 describes increased demand for cars, electronics and clothing due to government tax rebate checks raising consumer income. Scenario 3 describes decreased demand for an older video game console due to the announcement of a new upcoming console version.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    ECONOMICS NAME: ____________________

    Analyzing Shifts in Demand

    For each scenario,


    1) use the graph to illustrate the change in demand with either:
    a “shift” (a new D2 curve) or
    a “slide” (an arrow along the curve).
    2) Then provide the reason for the change in consumer demand using one of the following:
    Change in Price Income Preferences/Advertising
    Expectations Price of Related Goods (Substitute or Compliment)

    Scenario 1
    Weather forecasters say that
    a coming holiday weekend EXPLANATION
    will be sunny. Stores see
    increased sales for
    sunglasses, sunblock, and
    beach chairs.
    D1

    Scenario 2
    The government issues tax
    rebate checks to taxpayers, EXPLANATION
    hoping they will increase
    spending, stimulating the
    economy. Sales of cars,
    electronics, and clothing go
    up.
    D1

    Scenario 3
    A video game company
    announces it will introduce a EXPLANATION
    new game console in three
    months. Sales of the older
    version of the console drop by
    25 percent.
    D1

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