Question

part d: answer the following questions about demand.

1. it becomes fashionable for men to wear their hair very long. what will happen to the demand for haircuts? what is the determinant?
2. your parents give you $200 for earning an a in economics. you now have more money than before. what will happen to your demand for movie tickets? what is the determinant?
3. memorial high school seniors start selling old abe cola which costs ½ the price of pepsi. what will happen to the demand for pepsi? what is the determinant?
4. the price of printers decreases from $250 to $100. what will happen to the demand for printer paper? what is the determinant?
5. you lose your job. this means you have much less money to spend. what will happen to your demand for jeans?what is the determinant?
6. samsung raises the price for cell phones from $200 to $300. what will happen to the demand for iphones? what is the determinant?

Explanation:

1. When it becomes fashionable for men to wear long - hair, the demand for haircuts will decrease. The determinant is consumer taste and preferences.
2. With more money from parents, the demand for movie tickets will increase. The determinant is income.
3. Since Old Abe Cola is cheaper than Pepsi, the demand for Pepsi will decrease. The determinant is the price of related goods (substitutes).
4. As printers become cheaper, the demand for printer paper will increase. Printers and printer paper are complementary goods, so the determinant is the price of related goods (complements).
5. Losing a job and having less money means the demand for jeans will decrease. The determinant is income.
6. When Samsung raises the price of cell - phones, the demand for iPhones may increase as they are substitutes. The determinant is the price of related goods (substitutes).

Answer:

1. Demand for haircuts decreases; determinant is consumer taste and preferences.
2. Demand for movie tickets increases; determinant is income.
3. Demand for Pepsi decreases; determinant is the price of related goods (substitutes).
4. Demand for printer paper increases; determinant is the price of related goods (complements).
5. Demand for jeans decreases; determinant is income.
6. Demand for iPhones may increase; determinant is the price of related goods (substitutes).