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CHAPTER
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STUDENT ACTIVITY
Analyzing Shifts in Demand
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SECTION 2
Various factors can cause market demand to increase or decrease. ◆ Read the descriptions
of several scenarios below, and then answer the questions that follow.
Scenario 1: Weather forecasters say that a coming holiday weekend will be sunny.
Stores see increased sales for sunglasses, sunblock, and beach chairs.
Scenario 2: The government issues tax rebate checks to taxpayers, hoping they will
increase their spending, which will stimulate the economy. Sales of cars,
electronics, and clothing go up.
Scenario 3: When a coffee shop cuts the price of bagels, people want to buy more.
Scenario 4: A famous actress introduces a new perfume, which has strong sales in its
first year.
Scenario 5: A company that has been producing foods used in Latino cooking for
many decades finds that its sales have doubled in the last twenty years.
Scenario 6: A series of commercials shows people enjoying vacation cruises, and
reservations for the cruise line increase.
Scenario 7: More fans want to buy lower-priced tickets to a baseball game than
higher-priced ones.
Scenario 8: A video game company announces it will introduce a new game console in
three months. Sales of the older version of the console drop by 25 percent.
Scenario 9: More families want to buy turkey in November than in August.
Scenario 10: Sales of contact lens cleaner increase as more people wear contact lenses.
Questions to Think About
1. (a) Which scenarios reflect a shift in
the demand curve? Why? (b) Which
scenarios demonstrate the law of
demand? Why? (c) What is the difference
between these two types of situations?
4. Which scenario or scenarios reflect a
change in demand due to consumer
preferences, tastes, or advertising? Why?
5. Which scenario or scenarios reflect a
change in demand due to population
trends? Why?
2. Which scenario or scenarios reflect
a change in demand as a result of
consumer expectations? Why?
6. Which scenario or scenarios reflect
a change in demand due to changes
in demand for a substitute or
complementary produce? Why?
3. Which scenario or scenarios reflect a
change in demand due to changes in
income? Why?
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