Econ S&D Review Guide

Match the following examples to the Demand factors that shift the demand curve

• A business moves from a small town to a large city

• Consumer Expectations

• A famous celebrity endorses a product and causes more people to buy it

• Price of related goods

• Eggs and bacon frequently bought together

• Consumer Tastes

• An economic depression occurs and everyone's wages go down

• Consumer income

• Consumers decide to wait until Black Friday to buy a TV, since they know they'll get a deal

• Number of buyers

Which of these causes a change in Quantity Demanded?

• Consumer income

• A change in price

• Shift in supply

• Consumer Taste

Which of these would be a substitute for Coca Cola?

• A Cheeseburger

• Hotdogs

• Sour patch kids

• Pepsi

Which of these goods are compliments?

• Xbox and Playstation

• Coke and Pepsi

• Peanut butter and Jelly

• Forums and Air Force 1's

Draw a Supply AND Demand curve below

Weather forecasters predict this summer will be much hotter than usual. What will probably happen to the demand for air conditioners?

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A drought has made this year's tomato harvest smaller than usual. What will probably happen to the overall supply of tomato sauce?

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What will happen to the demand for new cars if a weak economy causes people to have lower incomes?

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Long ago, all books were copied by hand. Making new copies was a lot of work and took a long time. But the invention of the printing press made copying books faster and easier. What happened to the overall supply of books after the printing press was invented?

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The law of demand says that...

• Price and Quantity are inversely related

• Price and Quantity are the same

• People only want diminishing utility