Demand Worksheet with four scenarios showing shifts in demand curves for bagels, chicken, Hollister clothing, and Starbucks, each with a question about the change in demand or quantity demanded and its determinant.

Let's go through each scenario one by one, analyze the economic concept involved, and illustrate the correct change on the demand graph. We'll determine whether it's a change in quantity demanded (movement along the demand curve) or a change in demand (shift of the entire demand curve), and identify the determinant (factor causing the change).

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1. The price of cream cheese has risen.

- Good in question: Bagels
- Related good: Cream cheese (a complement to bagels — people often eat them together)

#### Analysis:
- When the price of cream cheese increases, consumers will buy less cream cheese.
- Since cream cheese is a complement to bagels, fewer people will want to buy bagels as well.
- This causes the demand for bagels to decrease, shifting the demand curve leftward.

> ✔ This is a change in demand (not quantity demanded), because the price of a related good changed.

#### Graph:
- Draw a new demand curve D₂ to the left of D₁.
- Label: Demand for Bagels shifts left from D₁ to D₂.

#### Answer:
- Change in demand or quantity demanded: Change in demand
- Determinant: Price of a related good (complement)

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2. The price of beef has decreased.

- Good in question: Chicken
- Related good: Beef (a substitute for chicken)

#### Analysis:
- Beef and chicken are substitutes.
- If beef becomes cheaper, consumers will switch from chicken to beef.
- So, demand for chicken decreases.

> ✔ This is a change in demand (shift of the demand curve), not a movement along it.

#### Graph:
- Shift the demand curve for chicken leftward from D₁ to D₂.

#### Answer:
- Change in demand or quantity demanded: Change in demand
- Determinant: Price of a related good (substitute)

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3. Lindsay Lohan (assume you don't like her) is the new face of Hollister clothing and her photos are in all their stores.

- Good in question: Hollister Clothing
- Assumption: You dislike Lindsay Lohan → negative publicity

#### Analysis:
- A celebrity endorsement (especially one you dislike) can affect consumer preferences.
- If people don’t like the celebrity, they may avoid the brand.
- This leads to a decrease in demand for Hollister clothing.

> ✔ This is a change in demand due to consumer tastes/preferences.

#### Graph:
- Shift the demand curve leftward from D₁ to D₂.

#### Answer:
- Change in demand or quantity demanded: Change in demand
- Determinant: Consumer tastes/preferences

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4. A new study shows that having a Starbucks latte every day will result in weight loss and a longer life.

- Good in question: Starbucks lattes

#### Analysis:
- The study makes drinking Starbucks lattes seem healthier and more beneficial.
- This improves consumer perception and increases desire to consume.
- So, demand for Starbucks lattes increases.

> ✔ This is a change in demand due to consumer expectations or tastes/preferences.

#### Graph:
- Shift the demand curve rightward from D₁ to D₂.

#### Answer:
- Change in demand or quantity demanded: Change in demand
- Determinant: Consumer tastes/preferences (or health-related expectations)

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Summary Table:

| Scenario | Change Type | Determinant |
|--------|-------------|------------|
| 1. Price of cream cheese rises | Change in demand | Price of a related good (complement) |
| 2. Price of beef decreases | Change in demand | Price of a related good (substitute) |
| 3. Lindsay Lohan endorses Hollister | Change in demand | Consumer tastes/preferences |
| 4. Study says Starbucks helps health | Change in demand | Consumer tastes/preferences |

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Final Notes:

- Change in quantity demanded: Only occurs when the price of the good itself changes → movement along the demand curve.
- Change in demand: Occurs due to non-price factors (income, tastes, prices of related goods, expectations, etc.) → shift of the entire demand curve.

All four scenarios involve non-price determinants, so all are changes in demand, not quantity demanded.

Let me know if you'd like me to sketch the graphs!