Determinants of Demand Activity Answer Key
Determinants of Demand Activity Answer Key
Determinants of Demand Activity Answer Key
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Fall 2010 <strong>Determinants</strong> <strong>of</strong> <strong>Demand</strong> Exercise CIA 4U1<br />
Situation Market Determinant Relationship Effect on<br />
<strong>Demand</strong><br />
Example: Consumers preference increase<br />
for natural fruit beverages<br />
Natural Fruit<br />
Beverages<br />
The government <strong>of</strong> Canada introduces a Home<br />
home renovation tax credit program for Renovations<br />
consumers.<br />
A large increase in birth rates occurs in Diapers Number <strong>of</strong><br />
Canada<br />
buyers<br />
Consumers anticipate a fall in the price <strong>of</strong> Automotive Consumer<br />
current vehicles as the 2011 models will Market Expectations<br />
soon be released.<br />
(2010 models)<br />
The government <strong>of</strong> Canada has decided to Housing Number <strong>of</strong><br />
ease its immigration policy. As a result,<br />
Buyers<br />
Canada experiences an increase in<br />
immigrants.<br />
There is an increase in the price <strong>of</strong> butter Margarine Related <strong>of</strong><br />
Goods<br />
(substitutes)<br />
Bad weather in Colombia causes fears <strong>of</strong><br />
higher future c<strong>of</strong>fee prices.<br />
Ceteris paribus, the Canadian population<br />
declines as a result <strong>of</strong> an increasing death<br />
rate (and a decreasing birth rate).<br />
The introduction <strong>of</strong> Blu ray players causes<br />
consumers to switch from DVD’s for their<br />
home movie needs.<br />
C<strong>of</strong>fee<br />
Medical<br />
Services<br />
Blu Ray Discs<br />
Taste Direct Increase in<br />
demand<br />
Income Direct Increase in<br />
demand<br />
Consumer<br />
Expectations<br />
Number <strong>of</strong><br />
Buyers<br />
Consumer<br />
Preferences<br />
Direct<br />
Direct<br />
Direct<br />
Direct<br />
Direct<br />
Direct<br />
Direct<br />
Increase in<br />
demand<br />
Decrease in<br />
demand<br />
Increase in<br />
demand<br />
Increase in<br />
demand<br />
Increase in<br />
demand<br />
Decrease in<br />
<strong>Demand</strong><br />
Increase in<br />
demand<br />
Shift in the<br />
<strong>Demand</strong><br />
Curve<br />
Shift to the<br />
right<br />
Shift to the<br />
right<br />
Shift to the<br />
right<br />
Shift to the<br />
left<br />
Shift to the<br />
right<br />
Shift to the<br />
right<br />
Shift to the<br />
right<br />
Shift to the<br />
left<br />
Shift to the<br />
right
Fall 2010 <strong>Determinants</strong> <strong>of</strong> <strong>Demand</strong> Exercise CIA 4U1<br />
Situation Market Determinant Relationship Effect on<br />
<strong>Demand</strong><br />
The price <strong>of</strong> DVD players decreases DVD’s Related<br />
Products<br />
complimentary<br />
Consumers expect this winter that the prices<br />
<strong>of</strong> snow shovels will increase as a result <strong>of</strong> a<br />
harsh winter forecast<br />
Consumers expect that their net incomes<br />
will increase this year as governments<br />
promise a reduction in income taxes<br />
The Canadian government introduces a<br />
“cash for clunkers” program for consumers<br />
to trade in their old vehicles for newer, fuel<br />
efficient models<br />
A study suggests that genetically modified<br />
foods may pose a threat to consumer health<br />
Snow<br />
Shovels<br />
Retail<br />
Market<br />
New car<br />
market<br />
Genetically<br />
Modified<br />
Food<br />
Consumer<br />
Expectations<br />
Consumer<br />
Expectations<br />
Shift in the<br />
<strong>Demand</strong><br />
Curve<br />
Indirect Increase Shift to the<br />
right<br />
Direct Increase Shift to the<br />
right<br />
Direct Increase Shift Right<br />
Income Direct Increase Shift to the<br />
right<br />
Consumer<br />
Preference<br />
Direct Decrease Shift Left
Change language