Question

These graphs illustrate the demand for olive oil. Match the non-price determinants of demand with the type of shift in demand curve they are likely to cause.

Answer 1

Answer:

Decrease:

doctors reccomend the use of safflower seed oil

more people embrace an oil free diet

Increase:

news reports about the benefits of olive oil for heart health

more people use olive oil for skin and hair care

Explanation:

Answer 2

Demand for olive oil and non-commodity decisions and the nature of the demand curve change that may cause are:

• Increasing understanding of the importance of essential acids promotes the need for olive oil due to its high omega-3 content.

• Over the past few years, olive oil has gained amazing popularity as a healthy oil that provides beneficial fatty acids, antioxidants, and vitamins.

• There are a few or more factors, non-pricing decisions that may influence the demand and cause the required curve to change.

• The most common examples of these variables are demands of favorites, preferences, price of related items, income, and expectations.

• Non-Price Demand Decisions refers to factors other than the current price that may affect the demand for a service or product and that may result in a change in demand.