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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Understand the effects of price ceilings and price floors on market outcomes.

Analyze the impact of government subsidies on market prices, quantities, and the distribution of benefits between consumers and producers.

Understand the impact of a tax or subsidy on the selling price of a good and the net price paid by buyers.

Interpret graphical representations of market situations including the effects of various taxes and subsidies.

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Definitions:

Mid-Ocean Ridges

Undersea mountain ranges formed by the upwelling of magma as tectonic plates diverge, where new oceanic crust is created.

Asthenosphere

The semi-fluid layer of the Earth's mantle just below the lithosphere, allowing for plate tectonic movement due to its plasticity.

Marine Sediments

Deposits accumulated on the ocean floor, derived from chemical precipitates, organic matter, or the erosion of terrestrial materials.

Black Smokers

Hydrothermal vents on the seafloor in which hot water from within the rock jets out into cold seawater and forms a cloud of minerals, especially those rich in sulfur.