1. The Demand Curve Shifts
Econ
Chapter 4

2. Individual Demand Demand Can Increase or Decrease Individual Demand
An Increase in Demand
Means a Movement
of the Line P 6 5 4 3 2 1
Individual
Demand P Qd $5 4 3 2 1 10 20 35 55 80
Price (per bushel) D2
Decrease in Demand D1 D3 Q
Quantity Demanded (bushels per week)

3. Determining Factors Income: Normal Goods Inferior Goods Neutral Goods
Consumer Taste

4. Related Goods
Substitute Goods
Complements

5. Other Factors
Number of Buyers
Future Expectations

8. Δ Consumer Tastes

10. Assignment:
You will create a Demand Curve and illustrate a shift of the curve (increase or decrease)
Requirements:
1. Properly labeled graph: Axes, Title
2. Be sure to use arrows to show the direction of your shift, and label the curves D1 and D2
3. You MUST write an explanation for the shift, and identify the DETERMINANT

11. Assignment: If the LAST DIGIT of your phone number is—
1. Candy Bars 2. Robots 3. Books 4. Movie Tickets 5. Stuffed Animals
6. Pizza 7. Donuts 8. Tacos 9. Music Downloads 0. Cups of Coffee

12. The 5 Determinants, Again:
1. Income 2. Consumer Taste 3. Cost of Related Goods (Substitutes/Complements) 4. Number of Customers in the Market 5. Future Expectations