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Worksheet 5B Exercise 1: Shifts in the Demand Curve. In recent years, sales of music CDs have decreased as many consumers have elected to download individual tracks of music directly into their playing devices. Of course, the cost to download a single track is less than the cost of a CD. The demand for music CDs is shown in the demand schedule as D1. Imagine that as a result of pressure from the music industry, music downloads are outlawed, and the only way to purchase music is to buy a music CD. Demand for CDs increases and is now shown in the demand schedule as D2. Demand Schedule for CDs Quantity Demanded Price per CD (D1) Quantity Demanded (D2) 20 100 125 19 200 250 18 300 375 17 400 500 16 500 625 15 600 750 14 700 875 13 800 1000 12 900 1125 1000 1250 11 Using the data presented in the Demand Schedule for CDs, graph the demand curves D1 and D2 in the chart below. 20 19 18 17 Price 16 per CD 15 14 13 12 11 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 Quantity Demanded Refer to the chart you have drawn and answer the following questions: 1. When CDs sell for $18, compare the quantity demanded for CDs at demand levels D1 and D2. 2. Explain why more customers are now willing to purchase CDs for the same price. 3. When demand increases at all price levels, the demand curve shifts in which direction: right or left? 4. Explain the difference between an increase in demand and increase in the quantity demanded. a. Which is depicted as a movement along the demand curve? Command

Worksheet 5B Exercise 1: Shifts in the Demand Curve. In recent years, sales of music CDs have decreased as many consumers have elected to download individual tracks of music directly into their playing devices. Of course, the cost to download a single track is less than the cost of a CD. The demand for music CDs is shown in the demand schedule as D1. Imagine that as a result of pressure from the music industry, music downloads are outlawed, and the only way to purchase music is to buy a music CD. Demand for CDs increases and is now shown in the demand schedule as D2. Demand Schedule for CDs Quantity Demanded Price per CD (D1) Quantity Demanded (D2) 20 100 125 19 200 250 18 300 375 17 400 500 16 500 625 15 600 750 14 700 875 13 800 1000 12 900 1125 1000 1250 11 Using the data presented in the Demand Schedule for CDs, graph the demand curves D1 and D2 in the chart below. 20 19 18 17 Price 16 per CD 15 14 13 12 11 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 Quantity Demanded Refer to the chart you have drawn and answer the following questions: 1. When CDs sell for $18, compare the quantity demanded for CDs at demand levels D1 and D2. 2. Explain why more customers are now willing to purchase CDs for the same price. 3. When demand increases at all price levels, the demand curve shifts in which direction: right or left? 4. Explain the difference between an increase in demand and increase in the quantity demanded. a. Which is depicted as a movement along the demand curve? Command

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...
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3b worksheet economics for the virtual enterprise answer key

Worksheet 5B Exercise 1: Shifts in the Demand Curve. In recent years, sales of music CDs have decreased as many consumers have elected to download individual tracks of music directly into their playing devices. Of course, the cost to download a single track is less than the cost of a CD. The demand for music CDs is shown in the demand schedule as D1. Imagine that as a result of pressure from the music industry, music downloads are outlawed, and the only way to purchase music is to buy a music CD. Demand for CDs increases and is now shown in the demand schedule as D2. Demand Schedule for CDs Quantity Demanded Price per CD (D1) Quantity Demanded (D2) 20 100 125 19 200 250 18 300 375 17 400 500 16 500 625 15 600 750 14 700 875 13 800 1000 12 900 1125 1000 1250 11 Using the data presented in the Demand Schedule for CDs, graph the demand curves D1 and D2 in the chart below. 20 19 18 17 Price 16 per CD 15 14 13 12 11 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 Quantity Demanded Refer to the chart you have drawn and answer the following questions: 1. When CDs sell for $18, compare the quantity demanded for CDs at demand levels D1 and D2. 2. Explain why more customers are now willing to purchase CDs for the same price. 3. When demand increases at all price levels, the demand curve shifts in which direction: right or left? 4. Explain the difference between an increase in demand and increase in the quantity demanded. a. Which is depicted as a movement along the demand curve? Command
Transcribed Image Text:Worksheet 5B Exercise 1: Shifts in the Demand Curve. In recent years, sales of music CDs have decreased as many consumers have elected to download individual tracks of music directly into their playing devices. Of course, the cost to download a single track is less than the cost of a CD. The demand for music CDs is shown in the demand schedule as D1. Imagine that as a result of pressure from the music industry, music downloads are outlawed, and the only way to purchase music is to buy a music CD. Demand for CDs increases and is now shown in the demand schedule as D2. Demand Schedule for CDs Quantity Demanded Price per CD (D1) Quantity Demanded (D2) 20 100 125 19 200 250 18 300 375 17 400 500 16 500 625 15 600 750 14 700 875 13 800 1000 12 900 1125 1000 1250 11 Using the data presented in the Demand Schedule for CDs, graph the demand curves D1 and D2 in the chart below. 20 19 18 17 Price 16 per CD 15 14 13 12 11 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 Quantity Demanded Refer to the chart you have drawn and answer the following questions: 1. When CDs sell for $18, compare the quantity demanded for CDs at demand levels D1 and D2. 2. Explain why more customers are now willing to purchase CDs for the same price. 3. When demand increases at all price levels, the demand curve shifts in which direction: right or left? 4. Explain the difference between an increase in demand and increase in the quantity demanded. a. Which is depicted as a movement along the demand curve? Command
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