Period:______Name:___________________________

Demand Problems

1. The following question deals with the demand for Ford cars. Use the information given to
answer the questions that follow.

Kia introduces a new line of cars to compete with Ford. Kia prices their cars lower than the
Ford models.
Plot the demand curves below. Label the Before curve D1 and the After curve D2.
A. What happened to the demand for Ford cars?


B. Why did this happen?




C. What types of goods would these be considered? Substitutes or Compliments (Circle one)

D. Is this a change in quantity demanded for Ford cars or a change in demand for Ford cars?
How do you know? Explain your reasoning.
Period:______Name:___________________________
2. The Gap launched a new television campaign for its fall clothing. The ads were very
successful and lead to increased sales.
Plot the demand curves below. Label the Before curve D1 and the After curve D2. Answer
the questions that follow.
A. What happened to the demand curve for Gap clothes?



B. Is this a change in quantity demanded for Gap clothes or a change in demand for Gap
clothes? How do you know? Explain your reasoning.





C. What caused this change?