Micro ECON activities 3

So in the market for apples, will this change in the price of oranges affect quantity demand or demand?

Demand

And how do we show this change in demand?

We shift the whole demand curve.

And which way should we move along that demand curve?

leftward

If the demand curve shifts to the right, this means that at any given price consumers...

want more of the good

If something that affects buying other than price change -- even if it's a change in price of a related good -- what do we call the result?

A change in demand

Do you know we don't show these kinds of changes by moving along the same demand curve?

Because we held everything else equal -- we didn't allow any of these factors to change -- when we drew the demand curve for the apples.

Will quantity demand of oranges rise or fall as a result of this increase in price?

Fall

In the market for any good, there's only one thing that can cause movement along the same demand curve. What is it?

A change in that good's price

Will we show this change in the market for apples by shifting the demand curve or moving along the curve?

Shifting the demand curve

When the price of some good rises, the law of demand tells us which of the following will happen?

We'll move to the left along its demand curve.

And will demand increase or decrease?

increase

For example, Point a corresponds to a price of $32 and a quantity of 4 apples. What about point B?

It represents a price of $20 and a quantity demand of 10 apples.

Will we show the effect of an increase in the price of oranges by shifting the demand curve for oranges or moving along the demand curve for oranges?

Moving along the demand curve

If the demand curve shifts to the right, this would represent a(n):

increase in demand

Notice that there's a patter here. As the price of apples rises, what happens to the quantity demand of apples?

Quantity demand falls.

What does that mean we call apples and oranges?

Substitutes

Let's say there is an increase in the price of oranges. In the market for oranges, does the increase in price change demand or quantity demand?

Quantity demanded

And will the demand curve for apples shift to the right or the left?

Right

Look at the market demand curve to your right. If more people decide that apples are delicious, increasing their preference for apples, what will happen to the market demand curve?

We'll shift the whole demand curve to the right.