3. draw, label, and explain what happens to the demand for new cars if consumers expect that the us economy is entering a period of growth?
4. draw, label, and explain what happens to the demand for tea if the price of coffee doubles?
5. draw, label, and explain what happens to the demand for snowboards if the price of lift tickets drops by one - third?
6. draw, label, and explain what happens to the demand for generic macaroni and cheese when your income triples from 20k per year to 60k per year?
7. draw, label and explain what would happen to the quantity demanded of gas and the demand for electric cars if the price of gas went up to $3.75 to $5.05/gal. write which determinant is changing for your explanation

Question

Accepted Answer

### 3.
# Brief Explanations:
When consumers expect the U.S. economy is entering a period of growth, they anticipate better - financial situations. New cars are normal goods. So, the demand for new cars will increase. On a demand - curve graph, the x - axis represents the quantity of new cars and the y - axis represents the price of new cars. The original demand curve is labeled as $D_1$. The increase in demand shifts the demand curve to the right, labeled as $D_2$. The determinant here is consumer expectations.
# Answer:
The demand curve for new cars shifts to the right.

### 4.
# Brief Explanations:
Coffee and tea are substitute goods. When the price of coffee doubles, consumers will switch to the relatively cheaper substitute, tea. So, the demand for tea will increase. On a demand - curve graph, with the x - axis for the quantity of tea and the y - axis for the price of tea, the original demand curve is $D_1$ and the increase in demand shifts it to the right to $D_2$. The determinant is the price of a substitute good.
# Answer:
The demand curve for tea shifts to the right.

### 5.
# Brief Explanations:
Lift tickets and snowboards are complementary goods. When the price of lift tickets drops by one - third, it becomes cheaper to engage in snowboarding activities. So, the demand for snowboards will increase. On a demand - curve graph, with the x - axis for the quantity of snowboards and the y - axis for the price of snowboards, the original demand curve $D_1$ shifts to the right to $D_2$. The determinant is the price of a complementary good.
# Answer:
The demand curve for snowboards shifts to the right.

### 6.
# Brief Explanations:
Generic macaroni and cheese is an inferior good. When income triples from $20k$ to $60k$ per year, consumers will buy less of the inferior good as they can afford better - quality alternatives. On a demand - curve graph, with the x - axis for the quantity of generic macaroni and cheese and the y - axis for its price, the original demand curve $D_1$ shifts to the left to $D_2$. The determinant is income.
# Answer:
The demand curve for generic macaroni and cheese shifts to the left.

### 7.
# Brief Explanations:
For gas, as its price increases from $3.75$ to $5.05$ per gallon, according to the law of demand, the quantity demanded of gas will decrease. This is a movement along the demand curve. For electric cars, since gas and electric cars are substitutes, as the price of gas increases, the demand for electric cars will increase. On the gas demand - curve graph, with the x - axis for the quantity of gas and the y - axis for the price of gas, there is a movement up along the original demand curve $D_1$. On the electric - car demand - curve graph, with the x - axis for the quantity of electric cars and the y - axis for the price of electric cars, the original demand curve $D_1$ shifts to the right to $D_2$. The determinant for gas is price, and for electric cars is the price of a substitute good.
# Answer:
The quantity demanded of gas decreases (movement along the demand curve), and the demand curve for electric cars shifts to the right.

Sovi.AI - AI Math Tutor

QUESTION IMAGE

Question

Explanation:

3.

Answer:

4.