More on Demand: Review Q's

Directions - Answer the following questions for each scenario # 1 - 5 below:

1. Are the goods substitute/competing or complementary?
2. Will demand increase or decrease?
3. Which direction will the demand curve move?
4. Which demand factor made the change?

1. The price of gasoline increases to $10.00 per gallon. What will happen to the sales of large SUV's?

2. The price of a movie theater ticket increases to $20.00. What will happen to the amount of movie rentals at Netflix?

3. The price of ultra-high definition movie streaming players is reduced by half. What would happen to the sales of ultra-high definition movies?

4. The number of high school graduates nationally is expected to increase through the year 2020.What will happen to the demand for higher education in the United States?

5. The price of cotton drops, reducing the price of women's dresses by one-half. What would be the effect on the sales of women's shoes?

Each question has 4 answers . Example question 1 answer A,B,C, and D.

Use the TRIBE AND ROTTEN THAT IS COVERED IN CLASS. FOR PART D.