Demand Exercise

For each of the headlines below:

1. State whether there is a shift or a movement along the Demand curve
2. State the kind of shift (increase/decrease)
3. Create a diagram to illustrate this occurrence
4. Identify the non-price determinant that caused the shift


1. A winter snowstorm affects the market for heaters.

2. The price of toy fire engines increases.

3. A formerly communist country opens up its markets to allow purchases of
cars from the rest of the world.

4. Tanzanite sellers are worried about the impact of the recession.

5. The price of toothbrushes drops unexpectedly.

6. As population ages, the market for bicycles is changing.



Identify a set of Substitute good available in Dar es Salaam. Illustrate and explain
how an increase in the price of one will affect the other.




Identify Complementary Goods available in Dar. Illustrate and explain how a change
in price of one will affect the complementary good. Be sure to use diagrams to help
explain.