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 shortage of 40 appears.
   • 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.
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

   The school-fair drink market (example figures, made up for practice). Iced tea is sold at the next stall, and most buyers see it as a close substitute for smoothies. The price of iced tea rises from $2 to $3. The price of smoothies is still $4.

5. 3.

   Which change does Esme expect in the smoothie market?

   • Demand for smoothies shifts left, because dearer drinks make buyers want fewer drinks of every kind.
   • The quantity demanded of smoothies falls along the same curve, because the stall next door raised a price.
   • Demand for smoothies shifts right, because some tea buyers switch to smoothies at every price.
   • Supply of smoothies shifts right, because the higher tea price sends tea sellers to sell smoothies.

6. 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.

7. 4.

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

   • Neither curve shifts, because the prices of meals and noodles did not change.
   • 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.
   • The demand curve for sit-down meals shifts right and the demand curve for cup noodles shifts left.
9. 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?

   • Right: 80 is more than 60, and a bigger number means a bigger demand.
   • Not quite: the price cut lowered demand, because smoothies at $3 look less valuable.
   • Right: more smoothies were bought, so demand rose and the curve shifted right.
   • Not quite: quantity demanded rose along one curve; demand itself did not change.
10. 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 5.

    • Raise the price above $4, because 100 are wanted against 60 offered, so 40 buyers will pay more.
    • Keep $4 and offer 100, because sellers can add 40 smoothies without a higher price.
    • Cut the price to $3, because the extra 40 smoothies will be left over and will not sell at $4.
    • Raise the price to $6, because 100 are offered there and sellers will want to sell as many as possible.
11. 7.

    Noah predicts the new price and quantity once the heat wave starts and the market settles. Which prediction does the table support?

    Use the picture in question 5.

    • Price $4 and quantity 100, since that is how much buyers want at $4 in the heat wave.
    • Price $6 and quantity 60, because a higher price always follows more demand.
    • Price $5 and quantity 80, the only pair where buyers want what sellers offer.
    • Price $5 and quantity 40, as buyers move up the old demand curve to the higher price.

12. 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.

13. 8.

    What does Pia expect in the bike market?

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

14. 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.

15. 9.

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

    • Supply shifts right, so the price falls and the quantity sold rises.
    • Demand shifts right, so the price rises but the quantity sold stays the same as before.
    • Quantity demanded rises along the curve, because the trend makes backpacks seem cheaper to buyers.
    • Demand shifts right, so with supply unchanged both the price and the quantity sold rise.
16. 10.

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

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