Economics on demand "curve shift" Question - Please Help!!?

GIT-R-DONE!!!

New member
Explain the impact on the market for surfboards in Southern California -- Suppose the shark feedings did have a material and negative effect on demand - What would happen to the price of surfboards as a result of the curve shift???

Can someone please help me on this? I would really appreciate it. I am confused a bit and now have a huge headache. Thank you everyone
 
The demand curve "shifts" because a non-price determinant of demand has changed. (Shark attacks, I guess). A decrease in price of surfboards would just cause a movement along the curve for example not a shift.

If the demand curve shifts inward (meaning the whole market for surfboards is experiencing a drop in demand because less people want surfboards because they are afraid of the increased shark attacks), there would then be a surplus of surfboards supplied at the old equilibrium price. The market price of surfboards would decrease to form a new lower equilibrium price where supply met demand.
 
Back
Top