Practice Questions

Changes in Demand

1. When the price of olive oil goes up, what probably happens to the demand for corn oil?
a. The demand for corn oil increases (right shift in the demand curve).
b. The demand for corn oil decreases (left shift in the demand curve).
c. There will be no change in the demand curve. Rather, this is a change in quantity
demanded.
2. As a result of the COVID-19 pandemic, many people become unemployed, so they have
less money to spend. How would that impact the demand for TVs?
a. The demand for TVs would increase (right shift in the demand curve).
b. The demand for TVs would decrease (left shift in the demand curve).
c. There will be no change in the demand curve. Rather, this is a change in quantity
demanded.
3. If everyone thinks that the price of tomatoes will go up next week, what is likely to
happen to demand for tomatoes today?
a. The demand for tomatoes increases (right shift in the demand curve).
b. The demand for tomatoes decreases (left shift in the demand curve).
c. There will be no change in the demand curve. Rather, this is a change in quantity
demanded.
4. Rising steel prices cause the prices of SUVs and other cars to rise. Will the demand for
SUVs and other cars increase, decrease, or stay the same.
a. The demand for SUVs and other cars will increase (right shift in the demand
curve).
b. The demand for SUVs and other cars will decrease (left shift in the demand
curve).
c. There will be no change in the demand curve. Rather, this is a change in quantity
demanded.
5. Let’s say that the price of computers increases. How would that impact the demand for
computer games?
a. The demand for computer games increases (right shift in the demand curve).
b. The demand for computer games decreases (left shift in the demand curve).
c. There will be no change in the demand curve. Rather, this is a change in quantity
demanded.