Follow the steps to label and describe each demand curve.
1.Draw an arrow showing the direction in which demand moves for each scenario.
2.Properly identify each demand curve (D, D1, etc.).
3.Identify the item in question and the reason (according to TRIBE) for the change.
Example: A famous actress is seen in a new, fashionable leather jacket with fringes.
D D1
Item: leather jackets – demand increases
Reason: taste and preference
2.1) A news report declares that mad cow disease has been detected on a farm in Iowa.
P
Q
Item:
meat, demand decreases
_______________________________________________
Reason: people
____________________________________________
fear the beef may be unsafe, so they avoid purchasing it)
2.2)
New medical research reveals a new drug as a breakthrough in the treatment of arthritis.
P
Q
Item:
Arthritis medication – demand increases
_______________________________________________
people anticipate the drug will be effective, so they
Reason: ____________________________________________
want to buy it
1.Draw an arrow showing the direction in which demand moves for each scenario.
2.Properly identify each demand curve (D, D1, etc.).
3.Identify the item in question and the reason (according to TRIBE) for the change.
Example: A famous actress is seen in a new, fashionable leather jacket with fringes.
D D1
Item: leather jackets – demand increases
Reason: taste and preference
2.1) A news report declares that mad cow disease has been detected on a farm in Iowa.
P
Q
Item:
meat, demand decreases
_______________________________________________
Reason: people
____________________________________________
fear the beef may be unsafe, so they avoid purchasing it)
2.2)
New medical research reveals a new drug as a breakthrough in the treatment of arthritis.
P
Q
Item:
Arthritis medication – demand increases
_______________________________________________
people anticipate the drug will be effective, so they
Reason: ____________________________________________
want to buy it
