
ENGR.ECONOMIC ANALYSIS
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ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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2.10 APPLYING KEY CONCEPTS
Mean curves. In each problem below, there is an explanation of something that has happened to one of the
non-price factors that affects demand. The original demand curve, labeled “D1," has been drawn for you.
Draw a new demand curve that reflects the change in demand. Label the new curve "D2."
Change:
Your Response:
Ex.: Yet another popular new diet has everyone afraid to eat
Demand for Bread
carbs. Indicate what will happen to the demand curve
for bread, which are carb-rich.
P
D1
1.
The price of hotdog buns increases sharply. Indicate
what will happen to the demand for DECADOGS, a
nationally-recognized brand of hotdog.
Demand for DECADOGS
D1
ECONOMICS WORKBOOK
PAGE 45 OF 158
DEMIDEC © 2008
The price of iced tea decreases. Indicate what will
happen to the demand for lemonade.
2.
Demand for Lemonade
D1
In April, the last of the snow at the local ski resort
has melted. Indicate what has happened to the
demand for snowboards.
3.
Demand for Snowboards
A new president is elected, and his first order of
business is to give an immediate tax break to anyone
who earns $250,000 per year or more. Indicate what
will happen to the demand for Porsches when the tax
break goes through.
4.
Demand for Porsches
D1
The price of peanut butter decreases. Indicate what
will happen to the demand for jelly.
5.
Demand for Jelly
D1
Q.
Student loan checks are disbursed and college
students suddenly have more "income." Indicate
what will happen to the demand for macaroni-n'-
cheese dinners.
6.
Demand for Macaroni-n'-Cheese
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