Peter studies the demand curve of Sydney consumers of BMW cars. He has data for the...

Peter studies the demand curve of Sydney consumers of BMW cars. He has data for the 2014-16 period but is unsure how to analyse it and so asks for your help.

Select the item from the list provided to make the following statements true.

The quantity demanded for BMW cars fell in 2014. If demand was unchanged, this was because the price __________.

If the price fell in 2015 for BMW cars, ceteris paribus, how would an economist describe what happens in relation to the demand curve? There would be __________.

If the price increases in 2016, but is lower than at the start of 2014, then the quantity demanded for BMW cars in 2016 compared to 2014 would have __________.

Movement up and along the demand curve

Increased

Not equal

Shift to the left of the demand curve

Decrease

Decrease in demand

Shift right of the demand curve

Shift left of the supply curve

Movement both up and down along the demand curve

10.

Movement down and along the demand curve

11.

Not enough information to know

12.

Nothing has changed

Solutions

Expert Solution

(Answer:

Peter studies the demand curve of Sydney consumers of BMW cars. He has data for the 2014-16 period but is unsure how to analyze it and so asks for your help.

Select the item from the list provided to make the following statements true.

The quantity demanded BMW cars fell in 2014. If demand was unchanged, this was because of the price movement up and along the demand curve. (As demand was unchanged only possible movement is along the demand curve).

If the price fell in 2015 for BMW cars, ceteris paribus, how would an economist describe what happens in relation to the demand curve? There would be Shift to the left of the demand curve.

If the price increases in 2016, but is lower than at the start of 2014, then the quantity demanded BMW cars in 2016 compared to 2014 would have Not enough information to know. ( As we do not know what happen to our demand curve. It is possible that the demand curve has been shifted left and we have lower price as well as low quantity demanded. Or a rightward shift in the supply curve would have left us to low prices and high quantity demand.)

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Suppose there is a competitive market with 30 consumers, each of which has a demand curve...

Suppose there is a competitive market with 30 consumers, each of which has a demand curve given by P = 20 – 10Q, and 30 suppliers, each of which has a supply curve given by P=10Q. a. Derive equations for the aggregate demand and supply curves. b. Find the market equilibrium price and quantity using your answer to part (a). c. What are the net benefits (consumer plus producer surplus) of the market allocation in part (b)? d. What would...

Does a change in consumers' tastes lead to a movement along the demand curve or to a shift in the demand curve?

Does a change in consumers' tastes lead to a movement along the demand curve or to a shift in the demand curve?Does a change in price lead to a movement along the demand curve or to a shift in the demand curve?Explain your answers well written.

Does a change in consumers’ tastes lead to a movement along the demand curve or a shift in the demand curve?

Does a change in consumers’ tastes lead to a movement along the demand curve or a shift in the demand curve? Does a change in price lead to a movement along the demand curve or a shift in the demand curve?

Assume consumers are operating on the elastic portion of the demand curve and the firm meeting...

Assume consumers are operating on the elastic portion of the demand curve and the firm meeting this demand increases the price of the good. What can one conclude about the impact on the quantity demanded (%∆QDrelative to %∆P) and on the revenue the firm receives (or, equivalently, the consumers expend)?

Draw the market demand curve for a Veblen good. What is it that causes consumers to...

Draw the market demand curve for a Veblen good. What is it that causes consumers to demand more of the good as price increases above a certain price?

An increase in the number of consumers: shifts the demand curve rightward. results only in a...

An increase in the number of consumers: shifts the demand curve rightward. results only in a movement along the demand curve. Both answers B and C are correct. shifts the supply curve leftward.

Which of the following would shift the demand curve for cars to the right? Group of...

Which of the following would shift the demand curve for cars to the right? Group of answer choices An increase in the federal funds rate An increase in discount lending by the Fed to banks An increase in home mortgage interest rates An increase in the unemployment rate over the NAIRU originally proposed the use of government spending to stimulate the economy in the 1930s, during the Great Depression. Group of answer choices John Maynard Keynes Franklin Delano Roosevelt Albert...

Peter wants to sell one of his cars that has a diesel motor to his nephew...

Peter wants to sell one of his cars that has a diesel motor to his nephew Brett. Brett is eager to purchase the car but Brett does not realise that one of his uncle’s cars is diesel. Peter writes a letter to Brett as follows: “Dear Brett, I know that you are interested in buying one of my cars. I would like to give it to you but I know that you won’t accept charity. Therefore I will offer...

Peter wants to sell one of his cars that has a diesel motor to his nephew...

Question: Does a change in consumers’ tastes lead to a movement along the demand curve or...

Question: Does a change in consumers’ tastes lead to a movement along the demand curve or to a shift in the demand curve? Does a change in price lead to a movement along the demand curve or to a shift in the demand curve? Explain your answers.

Subjects