Practice exercises: DEMAND
Exercise 1: Drawing a Steeper Demand Curve
Question:
Given the following demand schedule for chocolate bars, construct the demand curve. Describe it
Exercise 2: Demand Curve with Larger Quantity Changes
Question:
Given the following demand schedule for concert tickets, create the demand curve:
Exercise 3: Price Changes
Question:
The price of ice cream decreases from $5 to $3 per cone. How does this affect the quantity demanded of ice cream? Draw a
graph.
Exercise 4: Price Increase
Question:
The price of movie tickets increases from $10 to $15. What happens to the quantity demanded for movie tickets? Draw a graph.
Exercise 5: Sales Promotions
Question:
A clothing store offers a 20% discount on all items, reducing the average price of a shirt from $25 to $20. What is the effect on
the demand for shirts? Draw a graph.
Exercise 6: Changes in Consumer Income
Question:
Assume that smartphones are a normal good. What happens to the demand curve for smartphones if consumers' income
increases? Draw a graph.
Exercise 7: Changes in Preferences
Question:
A new study shows that drinking green tea has significant health benefits. How will this affect the demand for green tea? Draw a
graph.
Exercise 8: Price of Substitutes
Question:
The price of coffee decreases significantly. How does this affect the demand for tea, assuming tea and coffee are substitutes?
Exercise 9: Changes in Population
Question:
The population of a city grows rapidly due to an influx of workers. How will this impact the demand for housing in the city?
Exercise 10: Expectations of Future Prices
Question:
Consumers expect that the price of gasoline will increase next month. How does this expectation affect the current demand for
gasoline?
Exercise 11: Price of Complementary Goods
Question:
The price of printers decreases. How does this affect the demand for printer ink?
Practice exercises: SUPPLY
Exercise 3: Impact of Technology
Question:
A new technology improves the efficiency of producing smartphones. How does this affect the supply of smartphones? Draw a
graph and explain
Exercise 4: Effect of Input Prices
Question:
The price of raw materials used in producing cars increases. What happens to the supply of cars? Draw a graph and explain
Exercise 5: Government Subsidies
Question:
The government provides subsidies to dairy farmers. How does this affect the supply of milk? Draw a graph and explain
Exercise 6: Natural Disasters
Question:
A hurricane destroys a significant number of coffee plantations. What is the impact on the supply of coffee? Draw a graph and
explain
Exercise 7: Number of Sellers
Question:
Several new companies enter the market for electric vehicles. How does this impact the supply of electric vehicles? Draw a
graph and explain
Exercise 8: Changes in Production Costs
Question:
The cost of labor for producing clothing decreases due to new wage agreements. What happens to the supply of clothing? Draw
a graph and explain
