Draw a Demand Curve and Label It D₁

question 7

Essay

Draw a demand curve and label it D₁.On the graph, illustrate an increase in demand and a decrease in demand, and label the curves D₂ and D₃, respectively.Starting on demand curve D₁, explain the shift that would result from each of the following events:
a.an increase in income and the good is a normal good
b.an increase in income and the good is an inferior good
c.a decrease in the price of a substitute good
d.a decrease in the price of a complementary good
e.an increase in the taste for the good
f.a decrease in population
g.an increase in the expected future price of the good
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Definitions:

Exercising Authority

The act of using power or control in an official capacity to enforce rules or make decisions.

Flexibility

The ability to adapt to new, changing, or challenging circumstances with ease and resilience.

Discretion

The freedom to decide what should be done in a particular situation, often granted to officials or authorities in their decision-making processes.

Power

The ability or capacity of an individual or group to influence or control the actions, behaviors, or opinions of others.