DemandTastesAndPreferences

by jwietl
Last updated 8 years ago

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DemandTastesAndPreferences

I’m ______________________ speaking to you from Joliet Central High School, room 377 for the Institute for the Teaching of Economics in All Subject Areas. You are listening to:The Institute for the Teaching of Economics in All Subject AreasVolume Two, Issue TwoDeterminants of Demand/Change in Consumer Tastes and PreferencesIn 1955, inspired by Rosa Parks, Jo Ann Robinson and Martin Luther King, Jr., over 50,000 African Americans in Montgomery Alabama walked, rode bicycles, and joined car pools as part of the boycott against the city bus company and the segregation laws in the south. This protest demonstrated support for the civil rights movement, and increasing support for an integrated society. According to economic theory, the actions of those who participated in the Montgomery bus boycott reflected a change in consumer tastes and preferences. That is, as the injustice of segregation came under increasing scrutiny, more and more people got involved in the Civil Rights Movement and, ultimately, forced an end to segregation laws in the south. In the case of the Montgomery Bus Boycott, those who walked, rode bikes, and joined car pools demonstrated a change in their tastes and preferences with respect to local transportation. These choices led to a decrease in the demand for bus tickets. This is shown by a shift in the demand curve down and to the left of the original demand curve. This shift will result in a decrease in price and decrease in quantity demanded.


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