Question

NAME (PRINT For each question, first draw a demand curve. label it D1. This is the initial condition. Then, in response to the situation posed, show how (if it does) the demand curve shifts on the same chart. Label the new demand curve D2. You must properly label the axes to get all points possible. Each question is worth 2 points. 1. The government announces that oranges are full of cancer-causing chemicals. Show what happens to the demand curve for oranges. 2. Leo DiCaprio wins the Oscar for best actor. Show what might happen to the demand curve for Leo (actually, his time). 3. The economy starts to expand rapidly and everyone's income is rising substantially. Show the effect on the demand curve for luxury cars. 4. The coronavirus continues to spread. Show what happens to the demand curve for airline tickets to Wuhan, China. 5. The price of bread doubles. Show what happens to the demand curve for bread.

Answer 1

1. Price of oranges Due to cancer causing Chemicals i ganges, demand for olanges decrease and demand unde suift inward from Di to Dz. di duantity of oranges Price of time ** Due to the award of best actor, demand for di capsio's time increase Di to Dz. O, Oz Quantity ису rimdy 3. Cara Pш т demand increases і Файли има for wonly cars from a to a. Da BN - Quantity of o luxury cars Price of tickets ai 4. Due to cosona vizus, demand for tickets to wuhan decreases from Dito Di di - O2 Quantity of tickets 5. Rice or read change in price of bread, does not shift the demand aume. It only causes a change in a quantity demanded. CS SL Steel CamScanner Quantity bread