Shift in Demand
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Transcript Shift in Demand
Bell Work
Objective:
Summarize what cause Demand to shift
and the effect on the price and quantity
demanded.
Bell Question:
What is the law of Demand?
Shifts in Demand
$
$
D2
D1
Q
Shift to the right indicates
an increase in Demand
D1
D2
Shift to the left indicates
a decrease in Demand
Q
Shift in Demand
SEPTIC
Substitutes
Chicken and beef
Price of chicken goes up, demand for
beef will go up
Expectations (consumers)
Bird flu expected to destroy most of
the future chicken population
Increased demand for chicken now
-Before it disappears
Population (# of buyers)
After WWII – Baby boom
Increase in baby clothes, diapers
Taste and Preferences
- What is Popular
IPads
Smart phones/IPhones
Income
If one’s income increases the
demand for normal items will
increase
Complements
PB & J
Price of peanut butter goes up, the
demand for jelly will go down
Ski/ ski boots