For each of the following, explain whether quantity demanded changes because of a demand shift or a price chan

Question

For each of the following, explain whether quantity demanded changes because of a demand shift or a price change:
a. As a result of decreased military spending, the price of Army boots falls.


b. Fish prices fall after the Pope allows Catholics to eat meat on Friday.


c. An increase in gasoline taxes lowers the consumption of gasoline.


d. After the Black Death struck Europe in the 14th Century, wages rose.

Answer 1

a/b - demand shift

c/d - price change

Answer 2

a. Shifts the demand curve left, drops price and quantity demanded

b. Shifts the demand curve of fish left, drops price and quantity demanded

c.Depends on whether the tax is on the supplier or the consumer.
If the tax is imposed on the seller his price of production goes up and supply curve shifts left, increasing total price and decreasing quantity demanded. -- price change
If the tax is imposed on the buyer at the pump then the demand curve shifts to the left. This decreases quanity demanded and increases total price (with tax added) -- demand shift.
Equal total effects in both cases.

d. Shifts the labour supply curve to the left. Quantity demanded decreases due to a -- price change.

Peace

Answer 3

their all demand shifts.
a) curve shifts to the left as less demand because of smaller income, price lowers accordingly.
b)again curve shifts to the left because now more alternatives, price drops accordingly
c)again curve shifts to the left
d) this time supply of workers has decreased really a supply shift but definitely not brought on by price change.

NB the resulting change in price in all examples is just an effect of the demand shift.

Answer 4

They are all price changes as a result of a demand curve shift.

Answer 5

a/b - demand shift

c/d - price change