Demand Practice
A
D
B
D1
D1
C
D
D
----------
P---------------------------------
P ---------------------D
D
Which of the above graphs represents the described situation?
1. A store owner finds that customers are willing to buy more umbrellas on rainy days. (Demand for Umbrellas).
2. When XYZ Telecom, a long-distance service provider, offered reduced rates on weekends, its volume of
weekend calling increased sharply. (Demand for XYZ Telecom Services).
3. People buy more long-stem roses during the week of Valentine’s Day (Demand for Roses).
4. A sharp rise in the price of gasoline leads many commuters to join carpools in order to reduce their gasoline
purchases (Demand for Gasoline).
-----------------------------------------------------------------------------------------------------------------------------------------5. Which of the following would increase demand for normal goods? A decrease in ________?
A. Price
B. Income
C. the price of a substitute
D. Consumer taste for a good
E. The price of a complement
6. A decrease in the price of butter would most likely decrease the demand for ____________.
A. Margarine
B. Bagels
C. Jelly
D. Milk
E. Syrup
7. If an increase in income leads to a decrease in demand the good is ______________.
A. a complement
B. a substitute
C. inferior
D. Abnormal
E. Normal
8. Which of the following will occur if consumers expect the price of a good to fall in the coming months?
A. The quantity demanded will rise today.
B. The quantity demanded will remain the same today.
C. Demand will increase today.
D. Demand will decrease today.
E. No change will occur today.
9. Which of the following will increase the demand for disposable diapers?
A. A new “baby-boom”.
B. Concern over the environment effect of landfills.
C. A decrease in the price of cloth diapers.
D. A move toward earlier potty training of children.
E. A decrease in the price of disposable diapers.
10. Draw a demand graph showing the demand for apples. Illustrate what happens to the demand for apples if a
new report from the U.S. Surgeon General finds that an apple a day really does keep the doctor away.
D
On the blank demand graphs that follow be sure to label the following:
A. Price ($) at the top of the vertical line and Quantity (Q) at the far right of the horizontal line.
B. Label the original Demand Curve (D).
C. Label the new Demand Curve (D1) if the Demand Curve shifts.
D. If it is a movement along the Demand Curve create an original point and a new point to display the
new price and draw an arrow from the original point pointing toward the new point to show
which way along the Demand Curve the movement occurs.
E. Circle either change in demand or change in quantity demanded.
11. Demand Graph for: Computers
Situation: Dell Computers lowers it prices on all their models of computers.
>Change in Demand
>Change in Quantity Demanded
12. Demand Graph for: Volleyballs
Situation: A volleyball maker convinces high schools to fund varsity volleyball teams.
>Change in Demand
>Change in Quantity Demanded
13. Demand Graph for: Apple Juice
Situation: A freeze ruins the orange crop, and orange juice prices rise.
>Change in Demand
>Change in Quantity Demanded
14. Demand Graph for: Verizon Wireless
Situation: Verizon decides to lower prices on its plans and stop people from switching to AT&T.
>Change in Demand
>Change in Quantity Demanded
15. Demand Graph for: Gasoline
Situation: New hybrid cars and electric vehicles are produced by car companies and begin to hit the road.
>Change in Demand
>Change in Quantity Demanded
16. Demand Graph for: Electricity
Situation: The government mandates that regular incandescent bulbs can no longer be sold and
consumers must make the switch to CFL bulbs.
>Change in Demand
>Change in Quantity Demanded
17. Demand Graph for: Chocolate
Situation: Godiva and other chocolate makers get together and market a new holiday called Lovey Dovey
Day to be celebrated in June and recommend you buy your Lovey Dovey chocolate hearts.
>Change in Demand
>Change in Quantity Demanded
18. Demand Graph for: Yo Gabba Gabba toys
Situation: Yo Gabba Gabba is able to get Jack Black and other famous people to come and guest star on
their show.
>Change in Demand
>Change in Quantity Demanded
19. Demand Graph for: Wendy’s Cheeseburgers
Situation: Wendy’s lowers prices of cheeseburgers to $ .50 in order to draw customers into the store,
hoping they will buy lots of other food.
>Change in Demand
>Change in Quantity Demanded
20. Demand Graph for: Tickets to a Rockets game
Situation: LeBron James and Kevin Durant are traded to the Houston Rockets.
>Change in Demand
>Change in Quantity Demanded
21. Demand Graph for: Pilates DVD’s
Situation: In an interview on national TV, Megan Fox says that she was able to get her figure by doing
Pilates everyday for 10 years.
>Change in Demand
>Change in Quantity Demanded
22. Demand Graph for: Dave Ramsey’s Total Money Makeover Book, teaching people how to live on less money.
Situation: There is a recession and people lose a ton of money on the stock market. Real Estate values are
down a ton. People all over the area are getting laid off.
>Change in Demand
>Change in Quantity Demanded
23. Demand Graph for: Dunkin Donuts
Situation: Dunkin Donuts decides to lower the price of the donuts across the board.
>Change in Demand
>Change in Quantity Demanded
# 11 Demand Graph:
# 12 Demand Graph:
# 13 Demand Graph:
# 14 Demand Graph:
# 15 Demand Graph:
# 16 Demand Graph:
# 17 Demand Graph:
# 18 Demand Graph:
# 19 Demand Graph:
# 20 Demand Graph:
# 21 Demand Graph:
# 22 Demand Graph:
# 23 Demand Graph:
Demand Practice
A
B
D
D1
D1
C
D
D
---------P---------------------------------
P ---------------------D
D
Which of the above graphs represents the described situation?
1. A store owner finds that customers are willing to buy more umbrellas on rainy days. (Demand for Umbrellas).
A
2. When XYZ Telecom, a long-distance service provider, offered reduced rates on weekends, its volume of
weekend calling increased sharply. (Demand for XYZ Telecom Services).
C
3. People buy more long-stem roses during the week of Valentine’s Day (Demand for Roses).
A
4. A sharp rise in the price of gasoline leads many commuters to join carpools in order to reduce their gasoline
purchases (Demand for Gasoline).
D
-----------------------------------------------------------------------------------------------------------------------------------------5. Which of the following would increase demand for normal goods? A decrease in ________?
A. Price
B. Income
C. the price of a substitute
D. Consumer taste for a good
E. The price of a complement
6. A decrease in the price of butter would most likely decrease the demand for ____________.
A. Margarine
B. Bagels
C. Jelly
D. Milk
E. Syrup
7. If an increase in income leads to a decrease in demand the good is ______________.
A. a complement
B. a substitute
C. inferior
D. Abnormal
E. Normal
8. Which of the following will occur if consumers expect the price of a good to fall in the coming months?
A. The quantity demanded will rise today.
B. The quantity demanded will remain the same today.
C. Demand will increase today.
D. Demand will decrease today.
E. No change will occur today.
9. Which of the following will increase the demand for disposable diapers?
A. A new “baby-boom”.
B. Concern over the environment effect of landfills.
C. A decrease in the price of cloth diapers.
D. A move toward earlier potty training of children.
E. A decrease in the price of disposable diapers.
10. Draw a demand graph showing the demand for apples. Illustrate what happens to the demand for apples if a
new report from the U.S. Surgeon General finds that an apple a day really does keep the doctor away.
D
D1
On the blank demand graphs that follow be sure to label the following:
A. Price ($) at the top of the vertical line and Quantity (Q) at the far right of the horizontal line.
B. Label the original Demand Curve (D).
C. Label the new Demand Curve (D1) if the Demand Curve shifts.
D. If it is a movement along the Demand Curve create an original point and a new point to display the
new price and draw an arrow from the original point pointing toward the new point to show
which way along the Demand Curve the movement occurs.
E. Circle either change in demand or change in quantity demanded.
11. Demand Graph for: Computers
Situation: Dell Computers lowers it prices on all their models of computers.
>Change in Demand
>Change in Quantity Demanded
12. Demand Graph for: Volleyballs
Situation: A volleyball maker convinces high schools to fund varsity volleyball teams.
>Change in Demand
>Change in Quantity Demanded
13. Demand Graph for: Apple Juice
Situation: A freeze ruins the orange crop, and orange juice prices rise.
>Change in Demand
>Change in Quantity Demanded
14. Demand Graph for: Verizon Wireless
Situation: Verizon decides to lower prices on its plans and stop people from switching to AT&T.
>Change in Demand
>Change in Quantity Demanded
15. Demand Graph for: Gasoline
Situation: New hybrid cars and electric vehicles are produced by car companies and begin to hit the road.
>Change in Demand
>Change in Quantity Demanded
16. Demand Graph for: Electricity
Situation: The government mandates that regular incandescent bulbs can no longer be sold and
consumers must make the switch to CFL bulbs.
>Change in Demand
>Change in Quantity Demanded
17. Demand Graph for: Chocolate
Situation: Godiva and other chocolate makers get together and market a new holiday called Lovey Dovey
Day to be celebrated in June and recommend you buy your Lovey Dovey chocolate hearts.
>Change in Demand
>Change in Quantity Demanded
18. Demand Graph for: Yo Gabba Gabba toys
Situation: Yo Gabba Gabba is able to get Jack Black and other famous people to come and guest star on
their show.
>Change in Demand
>Change in Quantity Demanded
19. Demand Graph for: Wendy’s Cheeseburgers
Situation: Wendy’s lowers prices of cheeseburgers to $ .50 in order to draw customers into the store,
hoping they will buy lots of other food.
>Change in Demand
>Change in Quantity Demanded
20. Demand Graph for: Tickets to a Rockets game
Situation: LeBron James and Kevin Durant are traded to the Houston Rockets.
>Change in Demand
>Change in Quantity Demanded
21. Demand Graph for: Pilates DVD’s
Situation: In an interview on national TV, Megan Fox says that she was able to get her figure by doing
Pilates everyday for 10 years.
>Change in Demand
>Change in Quantity Demanded
22. Demand Graph for: Dave Ramsey’s Total Money Makeover Book, teaching people how to live on less money.
Situation: There is a recession and people lose a ton of money on the stock market. Real Estate values are
down a ton. People all over the area are getting laid off.
>Change in Demand
>Change in Quantity Demanded
23. Demand Graph for: Dunkin Donuts
Situation: Dunkin Donuts decides to lower the price of the donuts across the board.
>Change in Demand
>Change in Quantity Demanded
# 11 Demand Graph:
# 12 Demand Graph:
# 13 Demand Graph:
# 14 Demand Graph:
# 15 Demand Graph:
# 16 Demand Graph:
# 17 Demand Graph:
# 18 Demand Graph:
# 19 Demand Graph:
# 20 Demand Graph:
# 21 Demand Graph:
# 22 Demand Graph:
# 23 Demand Graph: