DEMAND Homework
1. The law of demand states- when the price increases, the quantity demanded will __fall______.
When the price decreases, the quantity demanded will __rise_________.
2. If the UAE Federal Ministry of Health says that fish is healthy for you, the demand for fish will
(increase / decrease). Which determinant of demand causes this change? _Tastes and preference___
Which way will the demand curve shift? (left / right) Draw the new demand curve- Label it D1.
P
D1
D
Q
3. If economists in the UAE announce that the unemployment rate will increase over the next six months.
The demand for new homes will (increase / decrease). Which determinant causes this change?
_Expectations__________. Which way will the demand curve shift? (left / right) Draw the new demand
curve- Label it D2
P
D2
D
Q
4. The price of maple syrup increases, the demand for pancakes will (increase / decrease).
Which determinant causes this change? ____Change of price for complementary good_______.
Which way will the demand curve shift? (left / right) Draw the new demand curve- Label it D3.
P
D3 D
Q
5. The price of airline tickets from the UAE to Oman goes up, the demand for bus tickets will (increase /
decrease). Which determinant causes this change? Change of price for substitute good . Which way will the
demand curve shift? (left / right) Draw the new demand curve-Label it D4.
P
D4
D
Q
6. Provide a complement for the following items:
car- ___tires________ bread-____butter__________ shoes-__socks________
, 7. Provide a substitute for the following items:
car-_____bus____________ pen-____pencil__________ television-__computer______
8. Using the demand schedule below, draw a demand curve. P
Demand Schedule 6
Price Quantity
$6.00 3 4
Price
$5.00 4 2
$4.00 5 0
$3.00 6 3 4 5 6
Quantity
Q
9. Plot the points for the demand curve and label the line D1.
Demand Schedule #1 10
Price Quantity 8
$9.00 1 6 D1
Price
$6.00 3 4
$5.00 4 2
$2.00 6
0
$1.00 7 0 1 2 3 4 5 6 7 8
Quantity
10. Demand Schedule #2 Use the graph above, plot the points for the new demand curve and label it D2
Price Quantity 10
$9.00 3 8
$8.00 4 6
D2
$5.00 6
Price
4
$4.00 7
2
$1.00 9
0
2 3 4 5 6 7 8 9 10
Quantity
11. Does a shift from D1 to D2 reflect an increase or a decrease in demand? ____increase________
12. Explain your answer to question 11
Line D2 in comparison to line D1 is on the righter most side. The demand curve shift has moved to the right
and this indicates increase in demand. As visible from the values in both demand schedules, the demand
increases for the same respective prices and this would explain the shift in demand curve to the right.
Or Due to a change in one of the determinants of demand the consumer purchases more at each price
resulting in a rightward shift in the demand curve.
1. The law of demand states- when the price increases, the quantity demanded will __fall______.
When the price decreases, the quantity demanded will __rise_________.
2. If the UAE Federal Ministry of Health says that fish is healthy for you, the demand for fish will
(increase / decrease). Which determinant of demand causes this change? _Tastes and preference___
Which way will the demand curve shift? (left / right) Draw the new demand curve- Label it D1.
P
D1
D
Q
3. If economists in the UAE announce that the unemployment rate will increase over the next six months.
The demand for new homes will (increase / decrease). Which determinant causes this change?
_Expectations__________. Which way will the demand curve shift? (left / right) Draw the new demand
curve- Label it D2
P
D2
D
Q
4. The price of maple syrup increases, the demand for pancakes will (increase / decrease).
Which determinant causes this change? ____Change of price for complementary good_______.
Which way will the demand curve shift? (left / right) Draw the new demand curve- Label it D3.
P
D3 D
Q
5. The price of airline tickets from the UAE to Oman goes up, the demand for bus tickets will (increase /
decrease). Which determinant causes this change? Change of price for substitute good . Which way will the
demand curve shift? (left / right) Draw the new demand curve-Label it D4.
P
D4
D
Q
6. Provide a complement for the following items:
car- ___tires________ bread-____butter__________ shoes-__socks________
, 7. Provide a substitute for the following items:
car-_____bus____________ pen-____pencil__________ television-__computer______
8. Using the demand schedule below, draw a demand curve. P
Demand Schedule 6
Price Quantity
$6.00 3 4
Price
$5.00 4 2
$4.00 5 0
$3.00 6 3 4 5 6
Quantity
Q
9. Plot the points for the demand curve and label the line D1.
Demand Schedule #1 10
Price Quantity 8
$9.00 1 6 D1
Price
$6.00 3 4
$5.00 4 2
$2.00 6
0
$1.00 7 0 1 2 3 4 5 6 7 8
Quantity
10. Demand Schedule #2 Use the graph above, plot the points for the new demand curve and label it D2
Price Quantity 10
$9.00 3 8
$8.00 4 6
D2
$5.00 6
Price
4
$4.00 7
2
$1.00 9
0
2 3 4 5 6 7 8 9 10
Quantity
11. Does a shift from D1 to D2 reflect an increase or a decrease in demand? ____increase________
12. Explain your answer to question 11
Line D2 in comparison to line D1 is on the righter most side. The demand curve shift has moved to the right
and this indicates increase in demand. As visible from the values in both demand schedules, the demand
increases for the same respective prices and this would explain the shift in demand curve to the right.
Or Due to a change in one of the determinants of demand the consumer purchases more at each price
resulting in a rightward shift in the demand curve.
