Question

Analyst 1 suggested that the demand curve for newspapers in Baltimore might have shifted to the right because people were becoming more literate. Think of two other plausible stories that would result in this demand curve shifting to the right.

Answer 1

Answer:

A shift to the right of the demand curve can be caused by any factor other than price that increases the willingless of consumers to purchase a product of service (in this case newspapers).

Two other events can result in a shift to the right of the demand curve for newspapers:

• Local elections are held in Baltimore - when local elections are held, people become more interested in following local news in order to decide their vote, therefore, they are willing to purchase more newspapers.
• A dramatic event occurs in Baltimore - it could be a natural disaster, a massacre, or an economic crisis, if things become too far from normal, people will want to learn about what is happening, and will look out for information in newspapers.