Demand versus
Quantity Demanded
In
each of the following, are we describing a change in demand, or a change in
quantity demanded? Be able to illustrate
graphically! (Note: where more than one product or service is
mentioned in a question, focus on the one that is underscored.)
1. The State of
2.
3. A new study (widely reported and believed)
indicates that potato chips cause liver rot in laboratory mice. As a result, potato chip sales fall by 22%.
4. The price of gasoline rises to $3.00 per
gallon. Immediately, sales of large
SUVs fall by 14%.
5. Spring break finally arrives. Bookings at
6. Consumer incomes rise by 10%. Consequently, sales of normnuts fall by
9%. (By the way, are normnuts misnamed?)
7. A technological breakthrough drops the price
of hoopies by 23%. Sales of hoopies rise
by 2%. (Jumping ahead: what does this indicate relative to the price
elasticity of demand for hoopies?)
8. The price of compact disc players falls by
12%. As a result, sales of the players
increase by 17%.
9. The price of compact disc players falls by
12%. As a result, sales of CDs
rise by 15%.
10. Supermodel Cindy Crawfish says that she
really goes for guys who wear Stinky Splash.
Sales of Stinky Splash surge by 88%.