Question

name: taliyah jones date: 10/1/25 period: 1st reasons for changes in demand beef consumption in may part a: read the following eight newspaper headlines. in each case, decide if the event will cause a change in the demand for beef. if so, determine if it is an increase or a decrease, and write the correct answer. begin at curve c. if you think headline 1 means there will be a decrease in demand, write \decrease\ in the first blank and \b\ in the second blank; move to curve b to do headline 2. if you think demand will increase, write \increase\ and \d\ in the blanks for headline 1; move to curve d to do headline 2. if no change, write
c\ move only one curve at a time. do not skip from, say a to c, even if you think the headline means there will be a large change in demand. do not go beyond the five curves. if you are at a and the next headline implies a decrease in demand, you goofed somewhere. there is one headline that implies that the demand for beef does not change. 1. price of beef to rise in june demand: ____________ curve: __________ 2. millions of immigrants swell u.s. population demand: __________ curve: __________ 3. pork prices drop demand: __________ curve: __________ 4. surgeon general warns that eating beef can be hazardous to health demand: __________ curve: __________ 5. beef prices fall: consumers buy more demand: __________ curve: __________ 6. real income for americans drops third month in a row demand: __________ curve: __________ 7. the price of charcoal increases demand: __________ curve: __________ 8. nationwide fad: the disco - burger demand: __________ curve: __________ part b: categorize each change in demand in part a according to the reason that demand changed. write the number of the headline(s) next to the reason for the change in demand. one category will have two numbers. a change in consumer expectations __________ a change in the number of consumers in the market __________ a change in the price of a substitute good __________ a change in consumer tastes __________ a change in the price of a complementary good __________ a change in income ____________

Explanation:

Step1: Analyze headline 1

If consumers expect the price of beef to rise in June, they may buy more beef now, increasing current demand. So demand is "increase" and we move to curve D.

Step2: Analyze headline 2

An increase in the U.S. population means more consumers, increasing the demand for beef. So demand is "increase" and we move to curve D (if starting from the previous position and not skipping curves).

Step3: Analyze headline 3

Pork is a substitute for beef. When pork prices drop, consumers will buy more pork and less beef, decreasing the demand for beef. So demand is "decrease" and we move to curve B.

Step4: Analyze headline 4

A health - warning about beef will make consumers less likely to buy beef, decreasing the demand. So demand is "decrease" and we move to curve B.

Step5: Analyze headline 5

A fall in beef prices leads to an increase in the quantity demanded (a movement along the demand curve, not a shift in demand). So demand is "NC" (no change in the context of demand curve shifts).

Step6: Analyze headline 6

A drop in real income means consumers have less money to spend, and they will buy less beef (assuming beef is a normal good). So demand is "decrease" and we move to curve B.

Step7: Analyze headline 7

Charcoal is likely a complementary good for beef (used for grilling). An increase in the price of charcoal will decrease the demand for beef. So demand is "decrease" and we move to curve B.

Step8: Analyze headline 8

A nationwide fad for the Disco - Burger may change consumer tastes away from beef, decreasing the demand for beef. So demand is "decrease" and we move to curve B.

For Part B:

• A change in consumer expectations: 1
• A change in the number of consumers in the market: 2
• A change in the price of a substitute good: 3
• A change in consumer tastes: 8
• A change in income: 6
• A change in the price of a complementary good: 7

Answer:

1. Demand: increase, Curve: D
2. Demand: increase, Curve: D
3. Demand: decrease, Curve: B
4. Demand: decrease, Curve: B
5. Demand: NC, Curve: (no curve shift)
6. Demand: decrease, Curve: B
7. Demand: decrease, Curve: B
8. Demand: decrease, Curve: B

Part B:
A change in consumer expectations: 1
A change in the number of consumers in the market: 2
A change in the price of a substitute good: 3
A change in consumer tastes: 8
A change in income: 6
A change in the price of a complementary good: 7