Shift of the demand curve. Turnover and profit

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Content

Shift of the demand curve

Turnover

Costs 

Profit

costprice

 source 6 In which direction does the demand curve shift

To the right

To the left

The income of consumers decreases

The consumers'taste changes in favour of a visit to the museum

 source 6 In which direction does the demand curve shift

To the left

To the right

Not a shift. A change in demand

The number of consumers increases

Amusement parkt tickets become cheaper

 source 6 In which direction does the demand curve shift

To the left

To the right

The ticket price for the zoo decreases

1. Consumer A
2. Consumer B

Calculation

Consumer A:

€ 40,000/ € 20 = 2,000 products

Consumer B

€ 44,000/ € 21 = 2,095 products

So consumer B has the highest purchasing power

Look at the change in demand in source 7 on page 44. This may be the result of:

1. A higher purchasing power of the population
2. A price decrease of the Citroen C5
3. A decrease in the population in the Netherlands
4. The disappearance of other car brands

Think of two other causes for the shift of the demand curve for the Citroen C5

Two other causes

Change in taste in favour of other brands

Other brands (Renault) has become cheaper (sustitute products)

A complementary product like petrol or parking got more expensive

Suppose that the average price of scooters increases from € 1,800 to € 2,200.
What will happen to the demand for scooters
This will lead to a

1. Shift of the demand curve to the left
2. Shift of the demand curve to the right
3. An increase in demand (but no shift)
4. A decrease in demand (but no shift)

The price increase of scooters also has an effect on the demand for other products. In which direction does the demand curve of petrol shift as a result of the price increase of scooters

1. To the left
2. To the right

In which direction does the demand for bicycles shift as a result of the price increase of scooters?

1. To the left
2. To the right

Homework

Exercise 1 - 7 of section 2