2) For each of the following determine if, for the product marked with bold lett

Question

2) For each of the following determine if, for the product marked with bold lettering, there is an increase, decrease or no change in demand. If the answer is “no change in demand,” explain what may be changing. See the relevant chapter(s) in the textbook.
a) The price of milk decreases.
b) The wage rate for employees increases.
c) A new app on iPhones reduces the risk of heart attacks.
d) The price of Toyota Camry, a direct competitor to the Honda Accord, increases.
e) Countries around the world start boycotting Dell laptops all of a sudden.
f) A $10,000 subsidy on electric cars for first time buyers.
g) A decrease in crime increases the number of prospective new homeowners in Dafiamaville.
h) The city reduces the average wage paid to cops.
i) Results from a new study shows that bread increases the risk of cancer.

Explanation / Answer

a) The demand will go up, There are so many products that can be made out of milk so people will use more diary

b) Demand will increase for those jobs, Also demand for goods from the people benefited also increases

c) Demand for iphones will increase, As there are so many heart patients these days

d) demand will fall as prices of camry rise.

e) Demand for dell laptops will fall

f) demand for electric vehicles will incraese

g) demand for housing in safer localities is always higher

h) cops number will decrease

i) demand for bread decreases.

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