00:03
Hello, in this question we need to indicate whether an event will cause either a movement along the same demand curve or there is a shift of the demand curve itself.
00:22
Okay, let's begin with the first event.
00:28
So let me write first event is a different event.
00:37
In the price of coffee.
00:48
So the price of coffee, and as we know that coffee is a complement for donuts, in this case there is a movement along, sorry, in this case there is a shift of the demand curve.
01:12
So, there is a decrease in the price of coffee people will buy coffee more than earlier and also they will buy more donuts so in this case we have the shift more specifically this shift will be to the right the second event is an increase in the price of donuts.
02:06
We know that if the price for donuts increases according to the low demand the quantity demanded will also decrease because there is a reverse or opposite a relationship between the price and quantity demanded.
02:30
So in this case we have a movement along the same demand curve...