Reference no: EM132113472

Grannie Mae woke up feeling very excited because her favourite Granny Smith apples have decreased in price due to a very good harvest. Due to her limited food budget she usually bought 1 kilo of apples per week. This time she is going to go to her favourite fruit store and buy three kilos at the lower price.

On her way back home she passed a shop selling the latest walking frame and they had the one which all her friends are using. Granny Mae, who was thinking of buying a regular walking stick, decided instead to buy the walking frame. When purchasing the frame, the store attendant told her that the frames are very popular and they have sold quite a few of them this month.

Two weeks passed and granny Mae was very happy with the walking frame and is now thinking of going to visit her sister in Queensland. She rang her sister and told her that she will visit her next month because the government is increasing her pension.

QUESTIONS:

a. Identify the concept of the law of demand, from the paragraph in the article. Use graph(s) to support your answer.         

b. Identify the concept of a change in demand, from the paragraph in the article that relates to a change in preference. Use graph(s) to support your answer