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Chapter 3: Q 40. (page 79)

How do you suppose the demographics of an aging population of “Baby Boomers” in the United States will affect the demand for milk? Justify your answer.

Short Answer

Expert verified

The demand for milk in the US will decline because of the demand factor.

Step by step solution

01

Step 1.Demand curve behavior.

A demand curve is basically a line that represents various points on a graph where the price of an item is lined up with the quantity demanded.

A demand curve shifts inward when the demand for a product decreases and shifts outward when the demand increases.

02

Step 2.Explanation

as given in the question that the aging population of the US is increasing due to demographic changes, the demand for milk will decline because as compared to old person children and teens consume more milk so the demand for milk will decline. and the demand curve will shift inwards as demand decreases.

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Most popular questions from this chapter

A low-income country decides to set a price ceiling on bread so it can make sure that bread is affordable to the poor. Table 3.11 provides the conditions of demand and supply. What are the equilibrium price and equilibrium quantity before the price ceiling? What will be the excess demand or the shortage (that is, quantity demanded minus quantity supplied) be if the price ceiling is set at \(2.40? At \)2.00? At \(3.60?

PriceQdQs
\)1.609,0005,000
\(2.008,5005,500
\)2.408,0006,400
\(2.807,5007,500
\)3.207,0009,000
\(3.606,50011,000
\)4.006,00015,000

Table 3.9 illustrates the market's demand and supply for cheddar cheese. Graph the data and find the equilibrium. Next, create a table showing the change in quantity demanded or quantity supplied, and a graph of the new equilibrium, in each of the following situations:

(a) The price of milk, a key input for cheese production, rises, so that the supply decreases by 80pounds at every price.

(b) A new study says that eating cheese is good for your health, so that demand increases by 20%at every price.

Price per poundQdQs
\(3.00750540
\)3.20700600
\(3.40650650
\)3.60620700
\(3.80600720
\)4.00590730

Let’s think about the market for air travel. From August 2014 to January 2015, the price of jet fuel increased

roughly 47%. Using the four-step analysis, how do you think this fuel price increase affected the equilibrium price

and quantity of air travel?

If a price floor benefits producers, why does a price floor reduce social surplus?

Why do economists use the ceteris paribus assumption?
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