Period:______Name:___________________________

Demand Problems #2

1. For each pair of goods below, indicate whether they are substitutes (S) or complements (C):

_____A. Cars and gasoline
_____B. Ford pickup car and Chevy pickup car
_____C. Canned tuna and canned salmon
_____D. Tuxedo and dress shoes
_____E. iPhone and Droid
_____F. Filet mignon and T-Bone steak
_____G. Bagels and cream cheese
_____H. Hot dogs and relish

2. Draw a demand curve(s) to represent each scenario below. Label a D1 and D2 curve in your
diagrams, if necessary. Also indicate with up or down arrows how price (P) and quantity
demanded (Qd) are changed in each scenario.

A. The price of petroleum has increased.
What happens to the demand for petroleum?

( _____ P , _____ Qd )


B. The price of petroleum and coal have increased.
What happens to the demand for natural gas?

( _____ P , _____ Qd )


C. When the price of petroleum goes up, what
happens to the demand for SUVs?

( _____ P , _____ Qd )


D. A news report said that toys made in China are
unsafe. What happens to the demand for Chinese
toys?

( _____ P , _____ Qd )


E. A large population of Americans moved to Jeju. What
happens to the demand for American foods there?

( _____ P , _____ Qd )
Period:______Name:___________________________
F. The price of a mufn pan has decreased at the store.
What happens to the demand for mufn mix?

( _____ P , _____ Qd )


G. Martin got a raise at work. How will this affect his
demand for his favorite food - pizza?

( _____ P , _____ Qd )




3. Movers vs. Shifters

For each statement, circle whether this would cause a change in quantity demanded or a change
in demand. Then, on the line provided, indicate whether it will cause movement along the curve
(M), shift left (SL) or shift right (SR) in the demand curve.


______A. Wegmans store lowers the prices of all of their produce and meat. Circle one of the
choices below:

Change in Quantity Demanded or Change in Demand


______B. A ood contaminated the towns water supply and residents were forced to drink bottled
water. How will this affect the demand for bottled water?

Change in Quantity Demanded or Change in Demand


______C. The price of coffee triples. How will this affect the demand for sugar?

Change in Quantity Demanded or Change in Demand


______D. Nick Charlaps store raises the prices of all of their ice cream cones and sundaes.

Change in Quantity Demanded or Change in Demand


______E. Sarah decides to put an extra 200$ in the bank each month to save for retirement:

Change in Quantity Demanded or Change in Demand