1. Movements along versus shifts of demand and supply curves The following two graphs depict the market for doughnuts. On the first graph that follows, show the effect of a shift of the entire demand curve resulting from consumers wanting to buy more doughnuts at every given price. Note: Select and drag the curve to the desired position. The curve will snap into position, so if you try to move the curve and it snaps back to its original position, just drag it a little farther. Demand PRICE (Dollars per box of doughnuts) QUANTITY (Boxes of doughnuts) Demand On the next graph, show the effect of a movement along a fixed demand curve that results from a decrease in the price of doughnuts, with every other factor held constant. Demand PRICE (Dollars per box of doughnuts) QUANTITY (Boxes of doughnuts) Demand Consider the market for doughnuts. Complete the following table by indicating whether each event will cause a movement along the demand curve for doughnuts or a shift of the demand curve for doughnuts, holding all else constant. Event Movement Along Shift An increase in the price of doughnuts An increase in income of consumers A decrease in the number of consumers
1. Movements along versus shifts of demand and supply curves The following two graphs depict the market for doughnuts. On the first graph that follows, show the effect of a shift of the entire demand curve resulting from consumers wanting to buy more doughnuts at every given price. Note: Select and drag the curve to the desired position. The curve will snap into position, so if you try to move the curve and it snaps back to its original position, just drag it a little farther. Demand PRICE (Dollars per box of doughnuts) QUANTITY (Boxes of doughnuts) Demand On the next graph, show the effect of a movement along a fixed demand curve that results from a decrease in the price of doughnuts, with every other factor held constant. Demand PRICE (Dollars per box of doughnuts) QUANTITY (Boxes of doughnuts) Demand Consider the market for doughnuts. Complete the following table by indicating whether each event will cause a movement along the demand curve for doughnuts or a shift of the demand curve for doughnuts, holding all else constant. Event Movement Along Shift An increase in the price of doughnuts An increase in income of consumers A decrease in the number of consumers
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:1. Movements along versus shifts of demand and supply curves The following two graphs depict the market for
doughnuts. On the first graph that follows, show the effect of a shift of the entire demand curve resulting from
consumers wanting to buy more doughnuts at every given price. Note: Select and drag the curve to the desired position.
The curve will snap into position, so if you try to move the curve and it snaps back to its original position, just drag it a
little farther. Demand PRICE (Dollars per box of doughnuts) QUANTITY (Boxes of doughnuts) Demand On the next
graph, show the effect of a movement along a fixed demand curve that results from a decrease in the price of
doughnuts, with every other factor held constant. Demand PRICE (Dollars per box of doughnuts) QUANTITY (Boxes of
doughnuts) Demand Consider the market for doughnuts. Complete the following table by indicating whether each event
will cause a movement along the demand curve for doughnuts or a shift of the demand curve for doughnuts, holding all
else constant. Event Movement Along Shift An increase in the price of doughnuts An increase in income of consumers A
decrease in the number of consumers
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