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Indicate how you think each of the following would shift demand in the indicated market:
a. The income of buyers in the market for Adirondack vacations increase.
b. Buyers in the market for pizza read a study linking pepperoni consumption to heart disease.
c. Buyers in the market for gas-powered cars learn of an increase in the price of electric cars (a substitute for gas-powered cars).
d. Buyers in the market for electric cars learn of an increase in the price of electric cars.

Respuesta :

Answer:

An increase in the income of buyers in the market for Adirondack vacations would increase the demand for vacations. As a result there would be a rightward shift of the demand curve for  Adirondack vacations.

b. As a result of the study, less people would be willing to eat pizza. As a result, there would be a leftward shift of the demand curve for pizza

c. If the price of electric cars increase,  there would be an increase in the demand of gas powered cars. As a result, the demand curve for  gas-powered cars would shift to the right

d. An increase in price of electric cars would lead to a reduction in the demand for electric cars. As a result, there would be a leftward shift of the demand curve for electric cars

Explanation:

Substitute goods are goods that can be used in place of another good. If the price of a good increases, the demand for the substitute good increases.

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