Demand Curve Shifters

Will Tragedy Result in an Increased convey? Due to the 2007 get around of Minnesotas Interstate 35W link, an emergence in the learn for cementum and marque is expected. Before the span collapse, the want for cement and steel had solitary(prenominal) been declining due to the join on health of the housing market. The housing markets light in pick up caused a decrease in bring for cement and steel. This occurred because the postulate for houses fell, meaning less steel and cement was needed to make the houses. The tragedy of the bridge collapse has called tending to the wrench of tie and their safety requirements. Due to the media coverage and the landed estates recent concern for this problem, an increase in frequent projects, such as the construction of bridges and roads, is expected. Reconstructing these bridges entrust require steel and cement, therefore increase the demand for these resources. framing 1Figure 2 Both of these increases in deman d are due to peck. In economic terms, taste refers to the consumer favoring and/or preferring a product due to advertising, fads, etc.

Since the recent tragedy, political relation officials keep back been forced into paying attention to the construction of bridges and roads, indeed the increased interest in usual projects; and to complete these projects more steel and cement will be needed. In 2005, 122.5 gazillion metric tons of cement were consumed; this year only 6 one million million is expected to be consumed, but in 2010, 128.9 million tons is expected. The demand increase is not expected to be drastic until 2010 , due to the accompaniment that the governm! ent must publishing contracts, which is expected to take 2 years or so. In Figure 1, a adjustment in consumer tastes (relating to the housing market) turn ons the demand curve to the left(p). Since taste is a determinate of a stagger in demand (as a opposed to a change in metre demanded), the entire curve will shift either left or right. In Figure 2, a change in taste (relating to media exposure and...If you want to cast a effective essay, order it on our website: OrderCustomPaper.com

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