3. Determinants of demand The following graph shows the demand curve for sedans (for example, Toyota Camrys or Honda Acc

[answerhappygod]

3 Determinants Of Demand The Following Graph Shows The Demand Curve For Sedans For Example Toyota Camrys Or Honda Acc 1 (32.17 KiB) Viewed 13 times

3 Determinants Of Demand The Following Graph Shows The Demand Curve For Sedans For Example Toyota Camrys Or Honda Acc 2 (26.82 KiB) Viewed 13 times

3 Determinants Of Demand The Following Graph Shows The Demand Curve For Sedans For Example Toyota Camrys Or Honda Acc 3 (25.03 KiB) Viewed 13 times

3. Determinants of demand The following graph shows the demand curve for sedans (for example, Toyota Camrys or Honda Accords) in New York City. For simplicity, assume that all sedans are identical and sell for the same price. Initially, the graph shows market demand under the following circumstances: Average household income is $50,000 per year, the price of a subway ride is $2.00 per ride. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. CE (Thousands of dollars per sedan) 40 30 R 10 Demand for Sedans Demand Graph Input Tool Demand for Sedans Price of a sedan (Thousand of dollars) Quantity Demanded (Sedans per month) Demand Shifters. Average Income (Thousands of dollars) (Dollars per ride) 20 450 50 da
PRICE (Thousands of dollars per sedan) 9 30 20 2 D Demand for Sedans nume Demand 100 200 300 400 500 600 700 800 000 QUANTITY (Sedans per month) Graph Input Tool Demand for Sedans Price of a sedan (Thousand of dollars) Quantity Demanded (Sedans per month) Demand Shifters Average Income (Thousands of dollars) Price of Subway (Dollars per ride) 20 450 50 Consider the graph. Suppose that the price of a sedan decreased from $20,000 to $15,000. This would cause a curve. ? the demand are
Consider the graph. Suppose that the price of a sedan decreased from $20,000 to $15,000. This would cause a curve. A decrease in average income causes a leftward the demand curve; therefore, you may conclude that sedans are good. (Hint: Try substituting different values for Average Income in the graph input tool and observing what happens.) Suppose that the price of a subway ride falls from $2.00 to $1.50. Because driving a car and taking the subway are, in the price of a subway ride shifts the demand curve for sedans to the . the demand Grade It Now a decrease Save & Continue Continue without saving A 40 12: 7/3