Chapter 3, Problem 4P

To determine

Explain the below instances, using graphs:

a. Increase in the prices of carry cases of portable power banks.

b. Decrease in the price of devices used to charge portable power banks.

c. Increase in the number of consumers of portable power banks.

d. Booming economy increases the income of typical buyers of portable power banks.

e. Consumers of portable power banks anticipate that the price of this good will decline in the future.

Content information:

Demand refers to the quantity of goods demanded for a given set of prices. Change in demand leads to a shift in the demand curve. At a given price, demand for the good can change by factors such as change in income, taste and preference, change in price of related goods, etc.

Quantity demanded refers to the quantity of goods demanded at a given price at a given point in time. Change in quantity demanded leads to a movement along the demand curve. Movement along the demand curve occurs when the price of the good changes.