Period:______Name:___________________________

Demand Problems #3

1. For each good below, indicate whether it is typically normal (N) or inferior (I):

_____A. Airplane tickets
_____B. Used clothing
_____C. Instant coffee
_____D. Starbucks coffee
_____E. Bus passes
_____F. Laptops

2. Draw a demand graph to represent each scenario below. Label a D1 and D2 curve in your
diagrams.


A. Steve lost his job. How might this affect his demand for
cable T.V.?


B. In the United States, Mary had an average middle class
salary. She moved to Ecuador, where the prices of goods
and services are lower than they are in the USA. How might
this affect her demand for a housemaid?


C. Roy got a promotion at work. How might this affect his
demand for clothes?



3. Multiple choice. For each question, decide if the events described cause movement of a point
along the demand curve, or cause a shift of the demand curve. Also, decide the direction of the
movement or shift.(Optionally, you can draw the graphs on a separate piece of paper to help you
visualize the movement).

A. Steve lost his job. How will this affect his overall demand for goods and services?
a. Movement: increase in P, decrease in Qd
b. Movement: decrease in P, increase in Qd
c. Shift: right (increase in D)
d. Shift: left (decrease in D)

B. The price of movie tickets decreases. How will this affect demand for popcorn at the movies?
a. Movement: increase in P, decrease in Qd
b. Movement: decrease in P, increase in Qd
c. Shift: right (increase in D)
d. Shift: left (decrease in D)

C. Emart runs a sale on headphones. How will this affect the demand for headphones?
a. Movement: increase in P, decrease in Qd
b. Movement: decrease in P, increase in Qd
c. Shift: right (increase in D)
d. Shift: left (decrease in D)

D. Roy won $1,000 at the casino playing poker. How will this affect his demand for poker chips?
a. Movement: increase in P, decrease in Qd
b. Movement: decrease in P, increase in Qd
c. Shift: right (increase in D)
d. Shift: left (decrease in D)


4. This question relates to the demand for the chocolate drink, Milo. Match each of the following
graphs with the change described in the table below.