The price of contact lens goes down. (Assume eye-glasses and contact lens are substitutes for this question) (8%)

  1. Suppose this is the market demand curve of eye glasses.

Respond to each following scenario about how the demand (or quantity demanded) of eye glasses may change.  You need to (i) post one of the graphs copied from the study material file for each question to represent the demand (or quantity demanded) of eye glasses and (ii) briefly explain it using the graph in your own words for each question. (40%)

  1. The price of eye-glasses goes up. (8%)
  2. The price of eye-glasses goes down. (8%)
  3. The price of contact lens goes up. (Assume eye-glasses and contact lens are substitutes for this question) (8%)
  4. The price of contact lens goes down. (Assume eye-glasses and contact lens are substitutes for this question) (8%)
  5. An increase in the income of consumers. (8%)
  6. A decrease in the income of consumers. (8%)
  7. A successful advertisement that promotes a fashion to wear glasses. (8%)
  8. A news shows that more and more people who wear contact lenses cause keratitis. (Assume eye-glasses and contact lens are substitutes for this question) (8%)
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