1.8 State whether each of the following events will result in a movement along the demand curve for McDonald's Big Mac burgers or whether it will cause the curve to shift. If the demand curve shifts, indicate whether it will shift to the left or to the right and draw a graph to illustrate the shift. a The price of Hungry Jack's Whopper burgers declines. b McDonald's distributes vouchers for $1.00 off on a purchase of a Big Mac. c A shortage of potatoes causes the price of fries to increase. d KFC raises the price of a bucket of fried chicken. e The Australian economy enters a period of rapid growth in incomes. 1.9 Suppose that the following table shows the quantity demanded of UGG boots at five different prices in 2017 and 2018. QUANTITY DEMANDED PRICE, $ 2017 2018 160 5 000 4 000 170 4 500 3 500 180 4 000 3 000 190 3 500 2 500 200 3000 2 000 Name two different variables that could cause the quantity demanded of UGG boots to change as indicated from 2017 to 2018. 1.12 Name three goods or services whose demand is likely to increase rapidly if the following demographic groups increase at a faster rate than the population as a whole: a Teenagers b Children under the age of five years c People over the age of 65 years 2.1 What is a supply schedule? What is a supply curve? 2.2 What is the difference between a change in supply and a change in the quantity supplied? 2.3 What is the law of supply? What are the main variables that will cause a supply curve to shift? Give an example of each. 2.4 Briefly describe whether each of the following statements describes a change in supply or a change in the quantity supplied. a To take advantage of higher prices for umbrellas in winter, Shelter Umbrellas Company decides to increase output. b The success of the Apple iPad-mini leads more firms to begin producing mini tablets. c In the six months following the devastating earthquake and tsunami in Japan in 2011, motor vehicle production in Japan fell by 20%. Copyright 2018 Pearson Australia (a division of Pearson Australia Group Pty Ltd) - 9781488612497/Hubbard/Microeconomics/4e 1