1.Find a recent newspaper (Internet) headline that clearly shows one of our "demand' determinants (these are the "shifters" found in mylecture notes) and cut and paste it into your post. (Make sure thesource is cited.)

2.Next,statethe determinant(use one of the 5 from my notes).

3.Then, tell us if it increases or decreases demand.

4.Lastly, once the shift takes place, will the new equilibrium price (Pe) be higher or lower? Will the new equilibrium quantity (Qe) be higher or lower?(Use the graphs)to help you with the direction that P and Q will move.

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these are the notes I do have

to provide,

a video from youtube:

https://youtu.be/21lMAjisITk

or

i. Taste/Preference - A change in taste and

preferences. This is usually media drivenyou see a news article that states

drinking a glass of red wine every day reduces heart stroke. After reading

that, you may decide to drink more red winetherefore, we would see an INCREASE

in DEMANDand our demand line would shift to the right. Look

at the graph on page 48, Figure 3.3 (the graph is for corn, but it works for

any good or service). Our demand line shifts from D₁ to D₂. The

price

of red wine did not change, but more consumers are buying red wine

due to the health benefits. If this is the case, think about the market for beer.

If people switched their taste and now prefer wine, what happens to the demand

for beer?

Hopefully you said it would decreasegraphically, in the beer market, our

demand line would shift left (D₁ to D₃).

ii. Income - A change in income. Changes in

our income will also affect our buying decisions. The more you make the more

you spend. However, we need to clarify things a bit.

1.Normal

goods - if a good is "normal," when our income increases, we would

buy MORE of it. For example, if your income increases, and you buy more Buckle

jeans, then Buckle

jeans are a "normal" good to you. (Other examples: Sony 60" flat

screen TV, steak & lobster, new car, trips to Bahamas, jewelry, etc.)

2.Inferior

goods - if a good is "inferior," then when your income increases, you

would buy less

of it. That's what defines it as "inferior." For example, your income

increases, and you buy less Wal-Mart jeans, then Wal-Mart

jeans are an inferior good to you. (Other examples: Off-brand 32" TV,

hamburgers & fish sticks, used car, trips to Bransonyikes!)

iii. # of buyers - A change in the number of

buyers. This one is based on a demographic or a geographic change. 1) Demographics

relate to the "make-up" of the population. Age, race, culture,

gender, religion, etc. For example, I've become a buyer in the "wrinkle

cream" market. I wasn't a buyer in that market when I was in my 40's, but

now that I'm in my 60's, I became a new buyer in that

marketbased solely on my age. Lots of other baby boomers are now buying

wrinkle cream too! Think of markets that you have either moved into, or out of,

based on your age. 2) Change in the number of buyers based on a geographic

just means that if you move, you may become a buyer in a market where you

previously were not one. Think of moving to Alaska...what you might demand

there would be different than what you demand here in KS. (I'm thinking

snowshoes or dogsleds...)

iv. in the price of a related good - A

change in the price of a related good. Goods can be related or unrelated. Sometimes price changes in one market affect anothermeaning

our goods are somehow related.

1.Substitutes

- two goods can be substitutes - meaning they can take the place of one another.

For example, Coke

and Pepsi.

For some buyers, it doesn't matter which one they buy. If the price of Coke

increases, consumers don't change their demand for Coke, they just buy less

at the higher price, so they change their "quantity demanded" for Coke.

However, since they want a soft drink, and Pepsi is now relatively

cheaper, we'll find some buyers will substitute the Pepsi

for the Coke.

Pepsi's

price isn't changing, but we increase our demand for Pepsi because the Coke

prices went up and we need a substitute. This moves us upward along

the Coke

demand line, but it shifts the Pepsi

demand line to the right.

a.Non-price

Determinants (shifters) of supplythese are the determinants that will

shift the supply line (curve).

i. cost (resource prices)

1.If

you produce candles, one of your inputs (resources) is wax. If the price of wax

increases, the supply of candles would decrease (you would purchase less wax to

make your candlesand therefore make less candles).

Our equilibrium price and

equilibrium quantity, denoted by (P_e, Q_e), will change whenever any of our non-price

determinants of either demand or supply change. (You have 5

demand-side shifters and you have 7 supply-side shifters.)

FIGURE 37 Changes in demand and supply and the effects on price and quantity. The Increase In demand from D, to D, In te) Increases both equilibrium price and equilibrium quantity. The decrease In demand from D, to D. In (b) decreases both equilibrium price and equilibrium quantity. The Increase In supply from S, to 5, In (c) decreases equilibrium price and Increase equilibrium quantity. The decline In supply from 5, to 5, In (dj Increases equilibrium price and decreases equilibrium quantity. The boxes in the top right comers summarize the respective changes and outcomes. The upward arrows In the boxes signify Increases in equilibrium price (F] and equilibrium quantity (3); the downward arrows signify decreases In these Rems D increase: D decrease: Pt. Of D DA (a) [bj Increase in demand Decrease in demand S Increase: 5 decrease: PI, Of Pt. 01 (c] (d] Increase in supply Decrease in supply Page 56 Changes in Supply What happens if the demand for some good (for example, automobiles) is constant but supply increases, as in ( Figure 3.7c? The new intersection of supply and demand is located at a lower equilibrium price but at a higher equilibrium quantity. An increase in supply reduces equilibrium price but increases equilibrium quantity. In contrast, if supply decreases, as in f Figure 3.7d, equilibrium price rises while equilibrium quantity declines