Question

1. use the image and space below to create a demand curve/graph based on the demand schedule. plot and label your points. when you are done, draw a new demand curve showing what would happen if nike then had a “flash - sale” on these shoes. what demand shifter would be the best explanation for this? price per pair of nike shoes quantity demanded (pairs) $50 200 $70 150 $90 100 $110 70 $130 40 $150 20

Explanation:

Step1: Plot initial demand curve

On a graph with price (P) on the y - axis and quantity demanded (Qd) on the x - axis, plot the points: (200, 50), (150, 70), (100, 90), (70, 110), (40, 130), (20, 150) and connect them to form the initial demand curve.

Step2: Analyze flash - sale impact

A flash - sale is a temporary reduction in price. According to the law of demand, when the price of Nike shoes decreases due to the flash - sale, ceteris paribus (all other things being equal), the quantity demanded increases. This is a movement along the existing demand curve, not a shift of the demand curve. The demand shifters include factors like changes in consumer income, tastes and preferences, prices of related goods, number of consumers, and expectations. In this case, since it's just a price - change due to the sale, the best explanation is the price of the good itself (a non - shifter factor for the demand curve in the context of demand shifters).

Answer:

A flash - sale on Nike shoes would lead to an increase in the quantity demanded, which is a movement along the existing demand curve, not a shift of the demand curve. The best explanation is the change in the price of the good itself.