Name:______

Unit 2: Demand -Review Activity

1.Pete's Pizzeria increases the price for a small pizza. What kind of change will occur in the market for Pizza Heaven's(a competitor of Pete’s Pizzeria) small pizza?

a.Demand increases

b.Demand decreases

c.Quantity demanded increases

d.Quantity demanded decreases

2.Which of the following would cause the demand for blue jeans to decrease?

a.Schools across the country establish a dress code that prohibits wearing blue jeans to school.

b.The price of blue jeans rises.

3.Gasoline Prices Rise. What kind of change will happen in the market for gasoline?

a.Demand increases

b.Demand decreases

c.Quantity demanded increases

d.Quantity demanded decreases

4.Consumers lose weight by eating jelly beans. What kind of change will happen in the market for jelly beans?

a.Demand increases

b.Demand decreases

c.Quantity demanded increases

d.Quantity demanded decreases

5.Hamburgers on sale for 50% off. What kind of change will happen in the market for hamburger buns?

a.Demand increases

b.Demand decreases

c.Quantity demanded increases

d.Quantity demanded decreases

6Which of the following would not result in an increase in demand for a product?

a. Increase in income

b. Increase in number of consumers in the market

c. Increase in price of a substitute

d. Increase in price of a complement

Instructions: Circle “T” for True or “F” for False.

7.Schools across the country stop using textbooks. Demand for textbooks will decrease.

TF

8.A law is passed guaranteeing students ages 10 and older a minimum allowance of $25.00 per week. Demand for movie tickets is likely to decline.

TF

9.Doctors have obtained excellent results using vitamin E to cure acne. Demand for Vitamin E will decrease.

TF

10.The price of Bola Cola (a substitute for Bubble Soda) increases. Demand for Bubble Soda will increase.

TF

11.If the price of peanut butter (a complement for jelly) increases, the demand for jelly will decrease.

TF

  1. Michelle is shopping for shirts. She chooses one, then notices that the shirts are on sale, and gets another two shirts. How can you explain this with a graph?
  2. Jenn's parents increase her allowance, so she decides to spend her extra money on more candy. How can you explain this with a graph?
  3. Kris and Tim's demand curves for packs of playing cards looks like this:


Who wants more when the price is $3 a pack?

  1. When the price of one fruit increases, consumers buy more of another fruit. This situation is an illustration of:

A)the income effect.

B)the substitution effect.

C)diminishing marginal utility.

D)the rationing function of prices.

  1. Which would be a likely cause of an increase in the price of pizza?

A)a decreased interest in take-out and fast-food dining

B)a decrease in the price of hamburgers, a substitute food

C)an increase in the price of cheese, a complement

D)a health report showing eating pizza reduces stress

Refer to the above diagram, which shows three demand curves for coffee. Which would cause the change in the demand for coffee illustrated by the shift from D1 to D2?

A)a decrease in the price of tea

B)an increase in consumer incomes

C)an increase in the price of sugar

D)a technological improvement in the production of coffee

  1. Refer to the above diagram, which shows three demand curves for coffee. Which would cause the change in the demand for coffee illustrated by the shift from D1toD3?

A)a decrease in the price of tea

B)an increase in consumer incomes

C)a decrease in the price of sugar

D)a technological improvement in the production of coffee

  1. If service stations raise the price of gasoline and experience a decrease in demand for automobile tires, then gasoline and tires are:

A)substitute goods.

B)economic goods.

C)inferior goods.

D)complementary goods.