PRESENTATION OUTLINE
Normal Goods
Scenario: A man is offered a new job that pays 3 times more money than his current job. What would happen to his demand for a new camaro?
Answer: Demand is likely to increase.
Inferior Goods
Scenario: A man takes a job that pays 3 times more than his last job. What is likely to happen to his demand for a 1970s station wagon?
Answer: His demand will likely decrease.
Consumer Expectations
Scenario: A girl wants to purchase a new coach purse, but the sales woman tells her it will go on sale in two days. What is likely to happen to her demand of waiting to purchase it for a couple of days?
Answer: The demand will increase.
Population
Scenario: If a new brand of jeans starts being sold in Roseville Michigan and then opens in New York City, what is likely to happen to the demand of the jeans?
Answer: The demand for the new brand of jeans will increase.
Consumer Taste/Advertising
Scenario: Crocs are no longer in style, yet Target continues to sell them. What is likely to happen to the demand of crocs?
Answer: The demand will decrease.
Prices of Related Goods
Scenario: A package of bagels at Kroger goes on sale. What will happen to the demand for cream cheese?
Answer: The demand will increase.
