6. Movements along versus shifts of demand curves Consider the market demand for donuts. Complete the following table by indicating whether an event will cause a movement along the demand curve for donuts or a shift of the demand curve for donuts, holding all else constant. Event Movement Along Shift A change in the expectations of consumers about prices A decrease in the price of donuts A change in tastes of consumers that makes them desire more donuts You can use the graph below to see the difference between movements along the demand curve and shifts of the demand curve. Select and drag the point or the curve to the desired position. The point and the curve will snap into position, so if you try to move one and it snaps back to its original position, just drag it a little farther. You will not be graded on any changes you make to this graph.

Consider the market demand for wine. Complete the following table by indicating whether an event will cause a movement along the demand curve for wine or a shift of the demand curve for wine, holding all else constant. Event An increase in the number of consumers An increase in the price of wine An increase in the price of beer (a substitute for wine) Movement Along Shift O O O Sous & Cantique

Mario and Chris are the only two consumers in a particular market for train tickets. The following table displays the relationship between the price of bus tickets for each consumer and quantity of train tickets demanded per week when the price of train tickets is $4.00 each. $2.00 $3.00 $4.00 $5.00 Price of bus tickets Mario's demand for train tickets 8 6. 4 2 Chris' demand for train tickets 1 2 3 a) Suppose the price of bus tickets is $4. The market demand of train tickets per day is

5. Assume a product's demand is Price = -(3/4) * Quantity + 12 [or P = -(3/4)*Q+12]. Fill in the demand schedule (i.e., pick quantities [0, 4, 8, 12 etc.] and find the associated prices) and plot demand on the graph (also label graph axes with the traditional measures for demand graphs) Page 3 Quantity Price 13 12 11 10 9- 8 7 6 5 4 3 2 1 0 0 2 4 6 8 10 12 14 16 18 20 22