You are provided with the following table, which shows price and quantity demanded data for boats.
(a) A credible forecast is then released which indicates that the prices of boats will fall in the near future. At each current price level, this forecast causes a reduction of 25% of the current consumers, as these consumers opt to wait to purchase the boats when the prices have actually fallen. Fill in the table to show what the new demand for boats will be.
(b) Which way has the demand curve shifted?
$$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Price of } \
\text { boats }
\end{array} & \begin{array} { c }
\text { Quantity demanded } \
\text { of boats }
\end{array} \
\hline \$ 37,000 & 4000 \
\hline \$ 42,000 & 3500 \
\hline \$ 47,000 & 3000 \
\hline \$ 52,000 & 2500 \
\hline \$ 57,000 & 2000 \
\hline \$ 62,000 & 1500 \
\hline
\end{array}$$ $$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Price of } \
\text { boats }
\end{array} & \begin{array} { c }
\text { Quantity demanded } \
\text { of boats }
\end{array} \
\hline \$ 37,000 & \
\hline \$ 42,000 & \
\hline \$ 47,000 & \
\hline \$ 52,000 & \
\hline \$ 57,000 & \
\hline \$ 62,000 & \
\hline
\end{array}$$

Question

You are provided with the following table, which shows price and quantity demanded data for boats.
(a) A credible forecast is then released which indicates that the prices of boats will fall in the near future. At each current price level, this forecast causes a reduction of 25% of the current consumers, as these consumers opt to wait to purchase the boats when the prices have actually fallen. Fill in the table to show what the new demand for boats will be.
(b) Which way has the demand curve shifted?
 $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Price of } \
\text { boats }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { of boats }
\end{array} \
\hline \$ 37,000 & 4000 \
\hline \$ 42,000 & 3500 \
\hline \$ 47,000 & 3000 \
\hline \$ 52,000 & 2500 \
\hline \$ 57,000 & 2000 \
\hline \$ 62,000 & 1500 \
\hline
\end{array}$$ $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Price of } \
\text { boats }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { of boats }
\end{array} \
\hline \$ 37,000 & \
\hline \$ 42,000 & \
\hline \$ 47,000 & \
\hline \$ 52,000 & \
\hline \$ 57,000 & \
\hline \$ 62,000 & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of You are provided with the following table, which shows price and quantity demanded data for boats.
(a) A credible forecast is then released which indicates that the prices of boats will fall in the near future. At each current price level, this forecast causes a reduction of 25% of the current consumers, as these consumers opt to wait to purchase the boats when the prices have actually fallen. Fill in the table to show what the new demand for boats will be.
(b) Which way has the demand curve shifted?
 $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Price of } \
\text { boats }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { of boats }
\end{array} \
\hline \$ 37,000 & 4000 \
\hline \$ 42,000 & 3500 \
\hline \$ 47,000 & 3000 \
\hline \$ 52,000 & 2500 \
\hline \$ 57,000 & 2000 \
\hline \$ 62,000 & 1500 \
\hline
\end{array}$$ $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Price of } \
\text { boats }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { of boats }
\end{array} \
\hline \$ 37,000 & \
\hline \$ 42,000 & \
\hline \$ 47,000 & \
\hline \$ 52,000 & \
\hline \$ 57,000 & \
\hline \$ 62,000 & \
\hline
\end{array}$$

You Are Provided with the Following Table, Which Shows Price