Question

demand problems: make sure you specify whether the demand curve shifts or it is a change in quantity demanded and what determinant is shifting the curve.

1. draw, label, and explain what happens to the demand for white shoes if everyone starts to follow a new fashion trend of dressing in black from head to toe?
2. draw, label and explain what happens to the demand for pampers if there is a 50% rise in the birth rate in the us?

Explanation:

1. When everyone starts to follow a new fashion trend of dressing in black from head - to - toe, the demand for white shoes decreases. This is a non - price determinant (taste and fashion) causing a leftward shift of the demand curve for white shoes.
2. A 50% rise in the birth rate in the US means more babies. Since pampers are used for babies, the demand for pampers increases. This is a non - price determinant (number of consumers) causing a rightward shift of the demand curve for pampers.

Answer:

1. The demand curve for white shoes shifts to the left due to a change in fashion (taste), a non - price determinant of demand.
2. The demand curve for pampers shifts to the right due to an increase in the number of consumers (more babies from the higher birth rate), a non - price determinant of demand.