Consider the market demand for compact cars. Complete the following table by indicating whether an event will cause a movement along the demand curve for compact cars or a shift of the demand curve for compact cars, holding all else constant. Event A change in the expectations of consumers about prices An increase in the price of compact cars A decrease in income of consumers Movement Along Shift
Consider the market demand for compact cars. Complete the following table by indicating whether an event will cause a movement along the demand curve for compact cars or a shift of the demand curve for compact cars, holding all else constant. Event A change in the expectations of consumers about prices An increase in the price of compact cars A decrease in income of consumers Movement Along Shift
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I don't know if my understanding is right but can you check and explain these?
Transcribed Image Text:Consider the market demand for compact cars.
Complete the following table by indicating whether an event will cause a movement along the demand curve for compact cars or a shift of the
demand curve for compact cars, holding all else constant.
Event
A change in the expectations of consumers about prices
An increase in the price of compact cars
A decrease in income of consumers
Movement Along Shift
O
● O
Transcribed Image Text:Consider the market supply of vegan wings.
Complete the following table by indicating whether an event will cause a movement along the supply curve for vegan wings or a shift of the supply
curve for vegan wings, holding everything else constant.
Event
A decrease in the price of vegan wings
A decrease in the number of producers
A change in technology that makes it less costly to produce vegan wings
Movement Along Shift
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VIEWStep 2: Effect of change in expectation of consumer about price on demand curve of compact cars:
VIEWStep 3: Effect of price increase on demand of cars:
VIEWStep 4: Effect of consumer income on demand curve:
VIEWStep 5: Determine the impact on supply of vegan wings:
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