Demand: the demand curve and what shifts it

Grade 12 Social Studies Worksheet - Building Confidence

Circle the best answer.

2. 1.

   At $4, buyers want 60 and sellers offer 60. A heat wave arrives and the price stays at $4. What does Ari expect?

   • Buyers want 100 and sellers offer 60, so a surplus of 40 appears.
   • Buyers still want 60 at $4, because the heat wave changes the weather and not the price.
   • Buyers want 80 and sellers offer 60, so a shortage of 20 appears.
   • Buyers want 100 and sellers offer 60, so a shortage of 40 appears.
3. 2.

   The market moves from $4 and 60 to $5 and 80. Bo splits the move into a shift of demand and a slide along demand. Which description fits?

   Use the picture in question 1.

   • Just supply changed, since sellers now offer 80 and buyers want 80, so nothing moved on the buyers' side.
   • Demand rose from 60 to 80 because the price rose, a move up along the old demand curve.
   • Demand fell, because buyers now pay $5 instead of $4 for each smoothie, and a higher price means less demand.
   • The curve shifts right to 100 wanted at $4; buyers then slide up the new curve to 80 at $5.

4. Read this first

   Card

   a town's families (example figures, made up for practice). Family incomes rise 10% this year. Sit-down meals are a normal good: people buy more as income rises. Cup noodles are an inferior good: people buy less as income rises. Prices of both are unchanged.

5. 3.

   What happens to the two demand curves when Jun's town gets a 10% raise?

   • The demand curve for sit-down meals shifts right and the demand curve for cup noodles shifts left.
   • The meals curve shifts left and the noodles curve shifts right, because richer families cut meals out.
   • Both demand curves shift right, because each family has more money to spend on any food.
   • Neither curve shifts, because the prices of meals and noodles did not change.
7. 4.

   Posters at the fair say smoothies will cost $6 next week. How does Kira expect today's smoothie market to change?

   • The quantity demanded today falls along the curve, because the price announced for next week is higher.
   • Demand today shifts right, as some buyers choose to buy now before the expected price rise.
   • Nothing changes today, because the price today is still $4.
   • Supply today shifts left, because sellers will wait for next week's higher price.
8. 5.

   The stand cuts its price from $4 to $3 with no heat wave. Luz says demand rose from 60 to 80. Which reply is right?

   Use the picture in question 4.

   • Not quite: the price cut lowered demand, because smoothies at $3 look less valuable.
   • Not quite: quantity demanded rose along one curve; demand itself did not change.
   • Right: 80 is more than 60, and a bigger number means a bigger demand.
   • Right: more smoothies were bought, so demand rose and the curve shifted right.
9. 6.

   In the heat wave the stand still charges $4. What should Milo expect sellers to do by closing time?

   Use the picture in question 4.

   • Raise the price above $4, because 100 are wanted against 60 offered, so 40 buyers will pay more.
   • Raise the price to $6, because 100 are offered there and sellers will want to sell as many as possible.
   • Cut the price to $3, because the extra 40 smoothies will be left over and will not sell at $4.
   • Keep $4 and offer 100, because sellers can add 40 smoothies without a higher price.

10. Card

    Bikes and helmets in an example town (figures made up for practice). Most riders who buy a bike also buy a helmet, so the two are complements. Helmet makers cut helmet prices by 30%. Bike prices have not changed.

11. 7.

    What does Pia expect in the bike market?

    • The quantity demanded of bikes rises along the same curve, because helmets cost less to buy.
    • Demand for bikes shifts right, because a cheaper helmet lowers the cost of riding a bike.
    • Supply of bikes shifts right, because helmets are cheaper for bike sellers to bundle.
    • Demand for bikes shifts left, because riders switch from bikes to the cheaper helmets they prefer.

12. Card

    Cloth bags (example figures, made up for practice). A popular video makes cloth backpacks trendy among students. The price of a cloth backpack is $20 before and after. The number of students has not changed.

13. 8.

    Which result will Ren see in the cloth-backpack market?

    • Demand shifts right, so the price rises but the quantity sold stays the same as before.
    • Supply shifts right, so the price falls and the quantity sold rises.
    • Demand shifts right, so with supply unchanged both the price and the quantity sold rise.
    • Quantity demanded rises along the curve, because the trend makes backpacks seem cheaper to buyers.

14. Card

    a student's note (made up). "Demand for smoothies is the number of smoothies people buy at the price on the board."

15. 9.

    Tala edits the note for accuracy. Which edit is best?

    • Demand is the schedule of prices and quantities; the number at one price is the quantity demanded.
    • Demand is the number of smoothies sold, which is the quantity both buyers and sellers agree on.
    • Demand is how much buyers want smoothies, with no link to the price.
    • Demand is the largest number of smoothies buyers would ever take, at the lowest price on the board.
16. 10.

    Zee writes one claim from the table for the fair newsletter. Which claim does the table support best?

    • Sellers offered 40 more smoothies because the heat wave raised their costs.
    • Smoothies are an inferior good, since buyers want more of them when it is hot outside.
    • At every price listed, buyers want 40 more smoothies in the heat wave than before.
    • Demand for smoothies will stay 40 higher through the whole summer.