Micro Unit 2 2.1- Market Demand Part 1 - Check Your Understanding- For each of the following, identify whether it is the substitution effect, the income effect, or the law of diminishing returns affecting the demand for popcorn. 1. Popcorn is 50% off this week, so Pam buys two bags instead of her usual one. 2. The price of potato chips decreases, so Jim buys less popcorn. 3. Dwight can either buy 2 bags of popcorn for $2 or 3 bags of popcorn for $2.50. 4. Kevin buys popcorn everyday this week because the price of M&M's tripled. Part 2 - Graph It- The demand schedule below is for soda from a vending machine in a local park. The data was compiled over several weeks in the winter. Complete the following and answer the question: 5. Graph a demand curve for soda Quantity based off the data in the demand Price Demanded schedule. $.75 50 6. Assume the park receives triple the $1.00 40 number of guests during the summer. How will the data in the demand $1.25 30 schedule most likely change? Show $1.50 20 that change on your graph. $2.00 5 Part 3 - Create Your Own Examples- Answer the following question: 7. Identify the five determinants of demand and for each one create an example that would increase the demand for popcorn. Video Help- https://goo.gl/ZUENba