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Change in Demand vs. Quantity Demanded
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What are TWO factors that might increase the demand of iPhone 13 in HK?
Increase in income, increase in population, bad publicity of competitor products
Apple launches a sales campaign offering discounts for the iPhone 13. Describe what happens to the demand curve for iPhone 13.
This is an increase in quantity demanded for iPhone 13, so there is an upward movement along the demand curve.
More people emigrate out of Hong Kong to foreign countries. Describe what happens to the demand curve for rice in HK.
The demand curve shifts to the left (since demand decreases)
TVB reports “breaking news” that Samsung’s Galaxy phones may explode when the batteries overheat. Will demand or quantity demanded change?
Demand changes - fewer people Samsung Galaxy phones at all given prices
Does the following situation increase demand? "More people buy computers during a sales campaign."
No - a sales campaign changes the price, which changes quantity demanded
Does the following situation increase demand? "More people shop at a department store after it gives out coupons to their customers."
No - a coupon changes the price, which changes quantity demanded
Does the following situation increase demand? "More people dine at a restaurant because of the discounts it offers."
No - a discount changes the price, which changes quantity demanded
Does the following situation increase demand? "More people watch sports news during the Olympic Games."
Yes - more people demand sports news at all given prices
True or false: "a drop in production cost" will NOT cause a change in the demand for a good
True: it will change supply, not demand!
True or false: "an increase in its market price" will NOT cause a change in the demand for a good
True: it changes quantity demanded
True or false: "an increase in consumers’ purchasing power" will NOT cause a change in the demand for a good
False: it does change demand
True or false: "A drop in the popularity of the good" will NOT cause a change in the demand for a good
False: it changes demand
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