Economics

Economics-11-1-13 November 1, 2013 Appetizer: If the price of Pepsi increases, the DEMAND curve for a close substitute like Coca-Cola will: (A) Shift downward toward the horizontal axis (B) Decrease and shift to the left (C) Increase and shift to the right (D) Remain unchanged Main Course: Demand curves from yesterday-Volunteers to do 1-9 on white board! Each answer has an a,b,c,d. You are a marketing executive for the Georgia Beef Company in charge of sales in the U.S. and Asia. You are concerned about the possible effects of these news stories on the demand for beef in May. Read the following eight newspaper headlines and complete the following instructions for each headline. A-Indicate if the change in demand will be an increase or a decrease B-State if the curve will move to the right (increase) or to the left (decrease) C-Draw a demand curve for beef showing the movement of the curve (left-decrease or right-increase) D-Indicate which determinant caused the change in demand Headlines: Price of Beef to Rise in June Millions of aliens (immigrants) swell U.S. population Pork Prices Drop Surgeon General Warns that Eating Beef May Be Hazardous to Health Sales of Soy Burgers on the Rise Real Income for Americans Drops for the Third Month in a Row Charcoal (think about complements)Shortage Threatens Memorial Day Cookouts Burgers Without Buns Become Nationwide Fad: High Protein Diets Gain Popularity Japan Halts U.S. Beef Imports, Mad Cow Disease Blamed Notes on demand elasticity Prac 1. Funeral Services 9. Cigarettes 2. Milk (Babies) 10. China (fancy stuff) 3. Fresh tomatoes 11. potatoes 4. Movie tickets 12. coffee 5. Expensive cars 13. electricity 6. Butter 14. gasoline 7. Housing 14. clean water 8. Physician services 15. insulin tice with demand elasticity