3. Setormilients of demand The following grapn enews comano curve for secans (for example, Toyota Camrys or Honda Accords) in New York City. For simplicity, assume that are arcical and mail for the same price. Initially, the graph shows market demand under the following circumstances: Average household COMES $50,000 per year, the face of a gallon of gas is $4.00 per gallon. 1808 the wiput cool to help you answer the following questions you will not be graded on any changes you make to this graph. Note. Once you intevole in a white teld, the graph and any corresponding amounts in each grey field will change accordingly. Damund for Seciamy Demand 40000 900 100 300 QUANTITY (Sedans per month) Graph Input Tool Demand for Sedans Price of a sedan 25 (Thousand of dollars) Quantity 338 Demanded (Sedens per month) Demand Shifters Average Income (Thousands of dollars) 50 Price of Gas (Dollars per gallon) E Consider the grabil Suppose that the price of a sedan decreased from $25,000 to $20,000. This would cause a shift of the demand Att increase th average income causes a nightward the demand curve; therefore, you may conclude that sedans are (Hint Try subsumuting different values for Average Income in the graph input tool and observing what happens) per of galliin of gas falls from $4.00 16 $3.00. Because sedatis and gasoline are a decrease in the price of a inlenge-shit the mand curve for sedans to the
3. Setormilients of demand The following grapn enews comano curve for secans (for example, Toyota Camrys or Honda Accords) in New York City. For simplicity, assume that are arcical and mail for the same price. Initially, the graph shows market demand under the following circumstances: Average household COMES $50,000 per year, the face of a gallon of gas is $4.00 per gallon. 1808 the wiput cool to help you answer the following questions you will not be graded on any changes you make to this graph. Note. Once you intevole in a white teld, the graph and any corresponding amounts in each grey field will change accordingly. Damund for Seciamy Demand 40000 900 100 300 QUANTITY (Sedans per month) Graph Input Tool Demand for Sedans Price of a sedan 25 (Thousand of dollars) Quantity 338 Demanded (Sedens per month) Demand Shifters Average Income (Thousands of dollars) 50 Price of Gas (Dollars per gallon) E Consider the grabil Suppose that the price of a sedan decreased from $25,000 to $20,000. This would cause a shift of the demand Att increase th average income causes a nightward the demand curve; therefore, you may conclude that sedans are (Hint Try subsumuting different values for Average Income in the graph input tool and observing what happens) per of galliin of gas falls from $4.00 16 $3.00. Because sedatis and gasoline are a decrease in the price of a inlenge-shit the mand curve for sedans to the
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
Section: Chapter Questions
Problem 7PA
Related questions
Question
Transcribed Image Text:3. Setormilients of demand
The following grapn enews
comano curve for secans (for example, Toyota Camrys or Honda Accords) in New York City. For simplicity, assume that
are arcical and mail for the same price. Initially, the graph shows market demand under the following circumstances: Average household
COMES $50,000 per year, the face of a gallon of gas is $4.00 per gallon.
1808
the wiput cool to help you answer the following questions you will not be graded on any changes you make to this graph.
Note. Once you intevole in a white teld, the graph and any corresponding amounts in each grey field will change accordingly.
Damund for Seciamy
Demand
40000 900
100 300
QUANTITY (Sedans per month)
Graph Input Tool
Demand for Sedans
Price of a sedan
25
(Thousand of
dollars)
Quantity
338
Demanded
(Sedens per month)
Demand Shifters
Average Income
(Thousands of
dollars)
50
Price of Gas
(Dollars per gallon)
E
Consider the grabil Suppose that the price of a sedan decreased from $25,000 to $20,000. This would cause a
shift of
the demand
Att increase th average income causes a nightward
the demand curve; therefore, you may conclude that sedans are
(Hint Try subsumuting different values for Average Income in the graph input tool and observing what happens)
per of galliin of gas falls from $4.00 16 $3.00. Because sedatis and gasoline are
a decrease in the price of a
inlenge-shit the
mand curve for sedans to the
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