Understanding Shifts in Demand
A Grade 12 Economics worksheet focusing on the factors that cause shifts in the demand curve and their implications.
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Understanding Shifts in Demand
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Read each question carefully and provide thoughtful answers. Use your knowledge of economics to explain the concepts of shifts in demand.
1. Which of the following would NOT cause a shift in the demand curve for a product?
A change in consumer income
A change in the price of the product
A change in consumer tastes and preferences
A change in the price of a substitute good
2. If the price of a complementary good decreases, what will likely happen to the demand for the original good?
Demand will decrease
Demand will increase
Demand will remain unchanged
Quantity demanded will decrease
3. A shift in the demand curve to the right indicates an in demand at every price level.
4. Goods that consumers demand less of when their income rises are called goods.
5. Expectations of a future price can lead to an increase in current demand.
6. Explain the difference between a 'change in quantity demanded' and a 'shift in demand.'
7. Identify and briefly describe two non-price determinants that can cause the demand curve to shift.
8. An increase in the number of consumers in a market will cause the demand curve to shift to the left.
True
False
9. If a good is a normal good, a decrease in consumer income will lead to a decrease in its demand.
True
False
10. Draw a simple demand curve. Then, illustrate a scenario where the demand curve shifts to the right and label the new curve D2.