If in doubt , explain your choice with a sentence of two . Variables typically included in a multivariate demand function (other than the price and quantityr of the item the demand function represents ] are consumer tastes and preferences . the number of buyers . spendable (disposable )income , prices of substitute goods ,prices of complementary goods ,advertising expenditures . weather. and expectations. Recalling that the price of the item being considered is placed on the vertical axis, and the quantity on the horizontal axis . the other variables are termed demand shifters . Please answer the following questions about the affect changes in other variables might have on the demand for the item . These changes will either cause demand to increase (shift Iight}or decrease [shift left). Use either word as applicable. for the short answer. 1. If the fllllll'E prices of the good being considered are expected to decrease .then present demand for the good being considered will likely : 2. If the demand for a good decreases then the demand for a complementary good will likely 3. The Atkins diet [promoting the virtues of a low carbohydrate food intake ) became very popular in the USA. This worried the pasta industry because it thought that pasta {a high carb food)demand would likely: 4. Lattes are expensive coffee drinks . If people's spendable income increases (perhaps wages have increased due to tight labor markets ), the demand for Lattes . a normal good 1 is likely to 5. CNN Today (8-1604) noted that orange juice is a highcarb drink. The diet rage at the time was the Atkins (low -carb ] diet. Therefore , the demand for convemional orange juice concentrate was likely to decrease relative to its supply. Thus orange growers were likely to see the price of their oranges used for making orange concentrate Variables typically included in a multivariate supply function {other than the price and quantity of the item the supply function represents )are prices of other goods that use similar input resources for production . expectations , the number of suppliers .techniques of production .taxes and subsidies , prices of input resources , and weather. Please answer the following questions about the affect changes in other variables might have on the SUPP]! of the item. These changes will either cause supply to increase {shift right }I or decrease [shift left). Use either word as applicableI for the short answer. 1. The affect on the supply of Ethanol of agovemment subsidy to its growers is to; 2. If there is a decrease in the number of producers of the item being considered 1then the supply of it is likely to
