Can you please exlain to me if I'm wrong not just correct me.
ps. Ceteris paribusor
the following markets, show whether change causes a shift in supply curve, a shift in demand curve, a movement along the supply curve, and/or a movement along the demand curve.
a.housing market: Consumers’ income fall. *shift in demand curve
b.tea market: the price of sugar goes down.*shift in demand curve
c. coffee market: there is a freeze in Brazil that severely damages the coffee crop.*shift in supply curve
d. fast food market: the number of fast-food restaurants in an area decreases.*shift in demand curve
e.peanut market in the U.S. Southeast: A drought lowers supply.* shift in supply curve
Looks right to me!
Look again at d. Why would that shift demand? If there are fewer restaurants, then fewer burgers supplied. People still want their burgers
a. In the housing market, if consumers' income falls, it would cause a shift in the demand curve. This is because a decrease in income would typically lead to a decrease in the quantity of housing demanded at each price level.
b. For the tea market, if the price of sugar goes down, it would also cause a shift in the demand curve. This is because a decrease in the price of a complementary good (sugar) would increase the quantity of tea demanded at each price level.
c. In the coffee market, if there is a freeze in Brazil that severely damages the coffee crop, it would cause a shift in the supply curve. This is because a decrease in the supply of coffee due to the damaged crop would lead to a decrease in the quantity of coffee supplied at each price level.
d. For the fast food market, if the number of fast-food restaurants in an area decreases, it would cause a shift in the demand curve. This is because a decrease in the availability of fast-food options would decrease the quantity of fast food demanded at each price level.
e. In the peanut market in the U.S. Southeast, if a drought lowers supply, it would cause a shift in the supply curve. This is because a decrease in the supply of peanuts due to the drought would lead to a decrease in the quantity of peanuts supplied at each price level.
Sure, I would be happy to explain!
In each of the given scenarios, we need to determine whether the change causes a shift in the supply curve, a shift in the demand curve, a movement along the supply curve, or a movement along the demand curve. Let's analyze each scenario one by one:
a. Housing market: Consumers' income falls. This change would result in a shift in the demand curve. When consumers' income falls, they are likely to have less disposable income to spend on housing, leading to a decrease in demand. This shift in demand will cause the demand curve to shift leftward.
b. Tea market: The price of sugar goes down. In this case, there would be a shift in the demand curve. When the price of sugar decreases, it becomes more affordable for consumers, which may lead to an increase in demand for tea (assuming tea and sugar are complementary goods, often consumed together). This shift in demand will cause the demand curve to shift rightward.
c. Coffee market: There is a freeze in Brazil that severely damages the coffee crop. This change would result in a shift in the supply curve. The freeze in Brazil damages the coffee crop, reducing the quantity of coffee that can be supplied to the market. This reduction in supply will cause the supply curve to shift leftward.
d. Fast food market: The number of fast-food restaurants in an area decreases. This change would also result in a shift in the demand curve. When the number of fast-food restaurants in an area decreases, there is likely to be a decrease in the availability of fast food options. As a result, consumers' demand for fast food may decrease. This would cause the demand curve to shift leftward.
e. Peanut market in the U.S. Southeast: A drought lowers supply. This change would result in a shift in the supply curve. With a drought in the U.S. Southeast, the peanut crop is damaged, causing a decrease in the quantity of peanuts that can be supplied to the market. This decrease in supply will cause the supply curve to shift leftward.
To summarize, changes in the housing market, tea market, fast food market, and peanut market result in shifts in the demand curve, while the change in the coffee market results in a shift in the supply curve. It's important to note that these explanations are based on the assumption of ceteris paribus, which means that all other factors remain constant while only the specified change is considered.