Shifts in Demand Worksheet
Explore the factors that cause shifts in the demand curve and their impact on market equilibrium.
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Shifts in Demand
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Read each question carefully and provide your best answer. This worksheet will test your understanding of factors that shift the demand curve.
1. Which of the following would NOT cause a shift in the demand curve for smartwatches?
A decrease in the price of smartwatches
An increase in consumer income
A successful advertising campaign for smartwatches
A decrease in the price of complementary goods like smartphone apps
2. If the price of gasoline dramatically increases, what would likely happen to the demand for large, fuel-inefficient SUVs?
Demand would increase
Demand would decrease
Demand would remain unchanged
Supply would decrease
3. A change in consumer tastes and preferences that makes a product more desirable will cause the demand curve to shift to the .
4. If consumers expect the price of a product to increase in the near future, the current demand for that product will .
5. Goods that are consumed together, like coffee and sugar, are called goods.
6. A decrease in the number of buyers in a market will cause the demand curve to shift to the right.
True
False
7. An increase in the price of a substitute good will lead to a decrease in demand for the original good.
True
False
8. Explain the difference between a 'change in quantity demanded' and a 'shift in demand'.
9. Identify and briefly describe two factors that can cause the demand curve for a normal good to shift to the right.
10. Observe the image below, which represents a demand curve. Illustrate a shift in demand to the right on this curve and explain what might cause such a shift.
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