Table of contents

1. Introduction to Macroeconomics1h 57m
2. Introductory Economic Models59m
3. Supply and Demand3h 43m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Price Floors3h 40m
6. Introduction to Taxes1h 25m
7. Externalities1h 3m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. Introducing Economic Concepts49m
11. Gross Domestic Product (GDP) and Consumer Price Index (CPI)1h 37m
12. Unemployment and Inflation1h 15m
13. Productivity and Economic Growth1h 17m
14. The Financial System1h 37m
15. Income and Consumption52m
16. Deriving the Aggregate Expenditures Model1h 22m
17. Aggregate Demand and Aggregate Supply Analysis1h 18m
18. The Monetary System1h 1m
19. Monetary Policy1h 32m
20. Fiscal Policy1h 0m
21. Revisiting Inflation, Unemployment, and Policy46m
22. Balance of Payments30m
23. Exchange Rates1h 16m
24. Macroeconomic Schools of Thought40m
25. Dynamic AD/AS Model35m
26. Special Topics11m

3. Supply and Demand

Shifting Demand

Macroeconomics

3. Supply and Demand

Shifting Demand

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Multiple Choice

What happens in the market for beef jerky if customers expect a price increase in the future?

Demand shifts to the left

Demand shifts to the right

Supply shifts to the left

Supply shifts to the right

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Verified step by step guidance

Understand the concept of expectations in economics: When consumers expect prices to rise in the future, they are likely to purchase more now to avoid paying higher prices later.

Identify the effect of consumer expectations on demand: If consumers expect the price of beef jerky to increase, the current demand for beef jerky will increase as consumers try to buy more before the price goes up.

Analyze the demand curve: An increase in demand is represented by a rightward shift of the demand curve. This means at every price level, the quantity demanded is higher than before.

Consider the options given: The correct answer should reflect the change in demand due to consumer expectations. Since demand increases, the demand curve shifts to the right.

Conclude with the correct market reaction: Based on the analysis, the correct answer is that the demand shifts to the right, as consumers are buying more in anticipation of future price increases.