Directions: For each scenario, draw the demand for the good in parentheses. Based on what is written in the scenario, shift the demand graph appropriately. Be sure to label the original demand curve as "D1" and the shifted demand curve as "D2" and draw arrows to show if the demand curve shifted to the right or left. Label the axes on the graph. Then, write what the determinant of demand is.

Key Point to Remember!- When demand goes up we shift the demand curve to the right, when demand goes down we shift the demand curve to the left.

The five determinants of demand are:

1. The price of the good or service.
2. The income of buyers.
3. The prices of related goods or serviceseither complementary and purchased along with a particular item, or substitutes and bought instead of a product.
4. The tastes or preferences of consumers will drive demand.
5. Consumer expectations. Most often, this refers to whether a consumer believes prices for the product will rise or fall in the future.

1. At every grocery store in the area, the price of hot dogs has been at an all-time high (Hot dog buns).

2. A news article on trans fats potential harm to peoples health was in the Sunday newspaper (KFC- high trans fat).

3. The weatherman on the morning news predicts it will be a rainy next few weeks (Sunglasses).

4. The price of televisions will increase two months from now (Televisions).

5. Lance Armstrong (cheater) is featured in an ad for Sport Chalets workout clothes (Sport Chalet workout clothes).

6. Margarine is on sale (Butter).

7. Families move out of Placentia into Yorba Linda (Homes in Placentia).

8. The office gossip is that Jane will be the next person to get a raise and a new promotion (Janes Demand for Clothes).

9. Peanut butter is buy one, get one free this week (Jelly).

10. Bob was laid off from his job as a real estate agent (Top Ramen-inferior good).

11. High-waisted shorts are now considered out of style (High-waisted shorts).

12. The price of ground beef has increased (Ground Turkey)