Page 57 in McConnell
1. Explain the law of demand. why does a demand curve slope downward? What are the determinants of demand? What happens to the demand cure when each of these determinants changes? Distinguish between a change in demand and change in the quantity demanded, noting the causes (s) of each.
2. Key Question What effect will each of the following have on the demand for Product B?
a. Product B becomes more fashionable.
b. The price of substitute product C falls.
c. Income declines and product B in an inferior good.
d. Consumers anticipate that the price of B will be lower in the near future.
e. The price of complementary product D falls.
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