“The price of a bushel of wheat, which was $3.00 last
month, is $3.70 today. The demand curve for wheat
must have shifted rightward between last month and
today.” Discuss.
“Some goods are bought largely because they have
‘snob appeal.’ For example, the residents of Beverly Hills
gain prestige by buying expensive items. In fact, they
won’t buy some items unless they are expensive. The
law of demand, which holds that people buy more at
lower prices than higher prices, obviously doesn’t hold
for the residents of Beverly Hills. The following rules
apply in Beverly Hills: “high prices, buy; low prices,
don’t buy.” Discuss.