The demand for refrigerators is often described as cyclical, and very sensitive to
refrigerator prices and interest rates. Given these characteristics, describe the effect of each of the
following in terms of whether it would increase or decrease the quantity demanded or the demand for
refrigerators. Moreover, when price is expressed as a function of quantity, indicate whether the effect
of each of the following is an upward or downward movement along a given demand curve or instead
involves an outward or inward shift in the relevant demand curve for refrigerators. Explain your
A. An increase in refrigerator prices
B. A fall in interest rates
C. A rise in interest rates
D. A severe economic recession
E. A robust economic expansion
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