Demand Revision Worksheet
Name:
Section:
1. What typically happens to the demand for a product when the price of a substitute
product decreases?
a) The demand for the product increases.
b) The demand for the product decreases.
c) The demand for the product remains unchanged.
d) The demand for the product initially increases, then decreases.
2. If the price of oranges increases, and oranges and apples are substitutes, what is
likely to happen to the demand curve for apples?
a) It shifts to the left.
b) It shifts to the right.
c) It remains the same.
d) It becomes a straight line.
3. Which of the following scenarios illustrates the "law of demand"?
a) When the price of milk increases, the demand for milk increases as well.
b) When the price of coffee decreases, people buy more coffee.
c) When the price of shoes rises, shoe production increases.
d) When income increases, people buy more luxury items.
4. If a product is considered a necessity, how is its demand likely to respond to an
increase in price?
a) Demand will decrease significantly.
b) Demand will increase.
c) Demand will decrease slightly.
d) Demand will remain unaffected.
5. A leftward shift in the demand curve for a product is most likely caused by:
a) A decrease in the price of the product itself.
b) A decrease in consumer incomes.
c) An increase in the price of a complementary good.
d) Both b and c.
6. Which of the following factors is least likely to influence the demand for a product?
a) Changes in consumer preferences.
b) The level of consumer income.
c) The number of sellers in the market.
d) The price of related goods.
7. If a new fashion trend increases the popularity of a product, what will likely happen to
its demand curve?
a) The demand curve will shift to the left.
b) The demand curve will shift to the right.
c) The demand curve will stay the same, but the quantity demanded increases.
d) The demand curve will slope upward.
8. Which of the following statements is correct regarding the effect of consumer tastes
and preferences on demand?
a) A change in consumer preferences has no effect on demand.
b) If a product falls out of favor, its demand curve will shift to the right.
c) An increase in popularity will cause a rightward shift in the demand curve.
d) Demand always increases regardless of consumer preferences.
9. If the price of a good is expected to fall in the future, how are consumers likely to
respond in the present?
a) Demand will increase as consumers purchase more now.
b) Demand will decrease as consumers wait for the lower price.
c) Demand will stay the same since price expectations do not affect demand.
d) Demand will increase only if the good is a necessity.
10. If a product's demand decreases when the price of another good increases, the two
goods are likely:
a) Substitutes.
b) Complements.
c) Unrelated.
d) Necessities.
11. List down two goods or services that are substitutes for one another. Do not use
examples done in class.
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12. List down two goods or services that are complements for one another. Do not use
examples done in class.
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13. List one reason for a contraction and extension in the demand curve.
Contraction …………………………………………………………………………………………………
Extension …………………………………………………………………………………………………
14. List one reason for an outward and inward shift in the demand curve for a Samsung
TV.
Outward shift
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Inward shift
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15. Draw a demand curve and show an extension movement
