1. Explain and show (separately) on a graph how each of the following would affect the...

1. Explain and show (separately) on a graph how each of the following would affect the demand for calculators:

a. Cell phones now have a calculator function included

b. Every course begins to require use of a calculator

c. The price for a calculator falls from $20 to $7

d. Consumers’ incomes increase, and calculators are a normal good

Solutions

Expert Solution

Cell phones now have a calculator function included:- As the cell phones will be having the function of calculators the demand of calculator will fall and thus the demand curve will shift towards left.
Every course begins to require use of a calculator:- This will cause greater demand of the calculator as students will buy calculator to study. Demand curve will shift to the right.
The price for a calculator falls from $20 to $7:- Due to reduction in the price, the demand curve will be same but the quantity demanded will increase.
Consumers’ incomes increase, and calculators are a normal good:- Higher income will increase the demand of the normal good.

Rahul Sunny answered 1 year ago

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