Question

How would each of the following changes affect the demand curve for over the counter sinus medication?

Pick one of the answers below to each scenerio:

Select one:

Demand increases

Quantity demanded decreases

Quantity demanded increases

Demand decreases

a. A wet spring leads to a bumper crop of ragweed

b. Factory closings lead to a drop in the area’s average income

c. The price of another sinus medication drops

d. A competing product with a different formula is found to be unsafe

e. A research study showing that the medication causes severe dizziness is published

f. The local population increases

Answer 1

a. A wet spring leads to a bumper crop of ragweed-Demand increases

b. Factory closings lead to a drop in the area’s average income-Demand decreases

c. The price of another sinus medication drops-Demand decreases

d. A competing product with a different formula is found to be unsafe-Demand increases

e. A research study showing that the medication causes severe dizziness is published-Demand decreases

All the above scenarios are factors that affect demand and hence cause either an increase or a decrease in the demand.Since there is no change in the price of sinus medication there is no change in quantity demanded.