Question

1. you received a raise and a job promotion.

demand for store brand foods
price
quantity
d₁
change in demand or quantity demanded.
determinant:

1. the weather is going to be sunny for the next few weeks.

demand for umbrellas
price
quantity
d₁
change in demand or quantity demanded.
determinant:

Explanation:

Problem 5: You received a raise and a job promotion. Demand for Store Brand Foods

Step 1: Identify the concept

Store brand foods are often considered inferior goods (demand decreases as income rises) or the raise affects preference for substitutes (e.g., name - brand foods). A raise increases income, so for store - brand (inferior) goods, demand (not just quantity demanded) shifts. The determinant is income.

Step 2: Analyze the graph

The original demand curve is \(D_1\). With a raise (higher income), consumers will likely buy less store - brand food (shift left) or more? Wait, store - brand is inferior: as income increases, demand for inferior goods decreases. So the demand curve shifts left (change in demand, not quantity demanded, because it's due to income, a non - price factor). The determinant is income (consumer income).

Step 1: Identify the concept

Weather is a non - price determinant of demand. Sunny weather means people need umbrellas less. This affects the entire demand curve (change in demand, not quantity demanded).

Step 2: Analyze the graph

The original demand curve is \(D_1\). With sunny weather, the demand for umbrellas will decrease (shift left) because the weather (a non - price factor) reduces the desire for umbrellas.

Answer:

(Change in demand/quantity demanded + Determinant):
Change in demand (shift of the curve, not movement along) - Demand for store - brand foods will decrease (shift left) because a raise (higher income) makes consumers less likely to buy inferior store - brand foods.
Determinant: Consumer Income

Problem 6: The weather is going to be sunny for the next few weeks. Demand for Umbrellas