Shifts in demand worksheet.docx - Name: Michael Thompson Period:9 ... - Free Printable

Let’s go through each problem one by one. We’ll think carefully about what causes a shift in demand (not movement along the curve) and then match it to the correct graph.

Remember:
- A shift of the entire demand curve happens when something changes that affects how much people want to buy at every price — like income, tastes, prices of related goods, expectations, or number of buyers.
- A movement along the curve is just because the price changed — that’s not a “shift.”

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Problem 1:
*If many grocery stores in the area offer sales on milk, there will be an increase in the quantity demanded for eggs.*

Wait — this says “quantity demanded,” which usually means movement along the curve due to price change. But here, milk and eggs are often bought together (complements). If milk goes on sale, people buy more milk → so they also want more eggs even if egg price didn’t change. That’s a shift in demand for eggs!

So demand for eggs increases → curve shifts right.

Looking at graphs: Graph C shows D1 shifting to D2 to the right → that’s correct.

✔ Answer for #1: C

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Problem 2:
*The price of televisions will increase as more manufacturers enter the television industry.*

More manufacturers = more supply → supply curve shifts right → price should FALL, not rise. Also, this is about SUPPLY, not demand. The question asks about shifts in DEMAND. So this statement doesn’t cause a demand shift — it’s misleading.

But wait — maybe we’re supposed to pick the graph that matches the *effect*? No — the worksheet says “draw the demand curve that best represents the following statements.” This statement is about supply affecting price, not demand shifting. So perhaps none? But let’s read again.

Actually, re-read: “the price of televisions will increase” — but if more manufacturers enter, competition increases → price decreases. So the statement itself is economically incorrect. But maybe it’s testing if you know that increased supply lowers price — so no demand shift occurs. But all graphs show demand curves. Hmm.

Wait — perhaps the trick is: if price increases, that would be a movement up along the demand curve — but that’s not a shift. None of the graphs show only a movement — they all show shifts or slope changes.

Graph B has a weird upward-sloping line — that’s not a normal demand curve. Demand curves slope down. So Graph B is invalid.

Maybe this is a trick question — but since the statement is wrong, perhaps no graph fits? But we have to choose from given options.

Alternatively — maybe they mean “as more manufacturers enter, they advertise more, increasing demand”? Not stated.

I think the intended answer is that this does NOT cause a demand shift — but since we must pick a graph, and Graph B is nonsense (upward sloping), maybe it’s not B.

Wait — look at Graph E: it shows two demand curves with same slope, D1 and D2, where D2 is to the left — decrease in demand. Doesn’t fit.

Actually, I think Problem 2 is poorly worded, but logically: more manufacturers → more supply → lower price → quantity demanded increases (movement along demand curve). So no shift in demand. Therefore, none of the graphs showing shifts apply. But since we must choose, and Graph B is clearly wrong (demand can’t slope up), perhaps skip for now.

Wait — let’s check other problems first.

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Problem 3:
*A large percentage of Americans are concerned about the health risks associated with eating beef. As a result, consumers will purchase less beef.*

This is a change in tastes/preferences → demand for beef decreases → demand curve shifts LEFT.

Look at graphs: Graph E shows D1 shifting to D2 to the left → yes.

✔ Answer for #3: E

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Problem 4:
*The government passes a law requiring every citizen to own at least one gun.*

This forces people to buy guns → increases demand for guns → demand curve shifts RIGHT.

Graph D shows D1 to D2 shifting right → yes.

✔ Answer for #4: D

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Problem 5:
*Margarine is on sale (butter).*

Margarine and butter are substitutes. If margarine is on sale (cheaper), people will buy more margarine and LESS butter → demand for butter decreases → demand curve for butter shifts LEFT.

Again, Graph E shows leftward shift → but we already used E for #3. Wait — can we reuse graphs? The worksheet doesn’t say we can’t. Let’s see the graphs:

Graphs are labeled A, B, C, D, E — five graphs, five questions. Probably one per question.

Graph E is leftward shift — good for #3 and #5? But #3 is beef, #5 is butter — both decrease in demand.

But Graph E is shown once. Maybe we need to assign uniquely.

Wait — look back at Graph A: it shows a movement along the curve? No — actually, Graph A shows D1 and D2, with D2 below D1 — that’s a downward shift? Or is it a rotation?

Actually, looking closely:

- Graph A: D1 and D2, D2 is parallel and below D1 → that’s a decrease in demand (left/down shift).
- Graph C: D2 above/right of D1 → increase.
- Graph D: D2 right of D1 → increase.
- Graph E: D2 left of D1 → decrease.
- Graph B: upward sloping — invalid.

For Problem 5: margarine on sale → less demand for butter → left shift → could be A or E.

But in Graph A, the shift looks like it might be a different type — actually, in standard econ, a parallel left shift is decrease in demand. Both A and E show left shifts? Let me describe:

In Graph A: original D1, new D2 is shifted down and left — but still parallel? Actually, in many worksheets, Graph A might represent a decrease.

Wait — perhaps I misidentified earlier.

Let me list clearly:

Assume standard interpretation:

- Rightward shift = increase in demand → Graphs C and D show that.
- Leftward shift = decrease in demand → Graphs A and E show that.
- Graph B is invalid.

Now for Problem 1: increase in demand for eggs → right shift → C or D.

We said C.

Problem 3: decrease in demand for beef → left shift → A or E.

Problem 4: increase in demand for guns → right shift → D (since C might be taken).

Problem 5: decrease in demand for butter → left shift → whichever is left.

But we have two left-shift graphs: A and E.

What’s the difference between A and E?

In Graph A: the demand curve shifts down/left, but the intercepts change — it’s a parallel shift? Actually, in some diagrams, Graph A might show a change in slope, but here it looks parallel.

Upon closer inspection (from typical worksheets):

- Graph A: often used for decrease in demand (left shift)
- Graph E: also left shift — but sometimes E is used for specific cases.

Wait — Problem 6? There are only 5 problems listed? Let’s count:

The image has:

1. Grocery stores milk sale → eggs demand ↑

2. TV manufacturers ↑ → TV price ↑ (but this is supply-side)

3. Health concerns → beef demand ↓

4. Gun law → gun demand ↑

5. Margarine on sale → butter demand ↓

That’s 5 problems. And 5 graphs: A,B,C,D,E.

Graph B is upward sloping — never correct for demand. So probably not used, or it’s a distractor.

Perhaps for Problem 2, since it’s about supply, and no demand shift, but the statement says "price will increase" — if price increases, and we assume demand curve doesn't shift, then it's a movement along, but no graph shows only movement — all show shifts.

Unless... Graph B is meant to be supply? But the title is "Shifts in Demand Worksheet", so all graphs should be demand curves.

I think Problem 2 is a trick: the statement is false, so no demand shift occurs. But since we must choose, and Graph B is invalid, perhaps it's not assigned. But let's see the answer pattern.

Another thought: in Problem 2, "more manufacturers enter" might lead to more advertising, increasing demand? Not stated.

Perhaps the intended answer is that demand doesn't shift, so no graph, but that's not an option.

Let's look for clues in the graphs.

Graph B has "price" on y-axis, "quantity supplied/demanded" on x-axis, and an upward-sloping line labeled "supply" — oh! Wait a minute! In Graph B, it says "supply" on the curve! Let me check the original image description.

In the user's image description, for Graph B, it says: "supply" written on the curve. Oh! I missed that.

So Graph B is a supply curve, not demand. But the worksheet is "Shifts in Demand", so probably Graph B is not to be used for demand shifts. Or perhaps it's a mistake.

In the text: for Graph B, it says "supply" — so it's illustrating supply, not demand. Therefore, for demand shift questions, we ignore Graph B.

So available demand shift graphs: A, C, D, E.

Four graphs for five problems? No, five problems, but Graph B is supply, so perhaps one problem uses it? But the worksheet is about demand shifts.

Let's read Problem 2 again: "The price of televisions will increase as more manufacturers enter the television industry."

As discussed, more manufacturers → more supply → supply curve shifts right → equilibrium price decreases. So the statement "price will increase" is incorrect. Therefore, this scenario does not happen, or it's based on a false premise.

But perhaps the question is: what demand shift would cause price to increase? An increase in demand.

If demand increases, price increases. So if we interpret the statement as "something causes demand to increase, leading to higher price", then it would be a rightward shift in demand.

So for Problem 2, if we force it, it might be a rightward shift → Graph C or D.

But the statement attributes the price increase to more manufacturers, which is supply-side.

I think there's a better way: let's solve the ones we're sure about.

Problem 1: milk sale → more eggs demanded → demand for eggs increases → right shift → Graph C (as it shows clear right shift)

Problem 3: health concerns → less beef demanded → left shift → Graph E (shows left shift)

Problem 4: gun law → more guns demanded → right shift → Graph D (another right shift)

Problem 5: margarine on sale → less butter demanded → left shift → Graph A (the other left shift)

Then Problem 2: left with Graph B, but Graph B is supply curve. Perhaps for Problem 2, since it's about supply affecting price, and no demand shift, but the graph shows supply, so maybe B is for Problem 2.

But the worksheet is "Shifts in Demand", so probably not.

Perhaps in some contexts, Graph B is used for something else.

Another idea: in Problem 2, "more manufacturers enter" might be misinterpreted as increasing demand if they are also consumers, but that's stretch.

Let's calculate the answers based on standard logic:

- Prob 1: demand for eggs increases → C
- Prob 2: this is not a demand shift; however, if we must choose, and since price is said to increase, and if demand increased, price increases, so perhaps C or D, but C is taken. Or D.
- Prob 3: demand for beef decreases → E
- Prob 4: demand for guns increases → D
- Prob 5: demand for butter decreases → A

Then Prob 2 is left with B, but B is supply.

Perhaps Graph B is a distractor, and for Prob 2, the answer is that no demand shift occurs, but since it's multiple choice, maybe it's not included.

I recall that in some worksheets, for such statements, if it's supply-related, they might have a graph for supply, but here the title is demand.

Let's look at the number of graphs: there are six graphs shown? No, in the user's message, it's described as having several graphs, but typically for 5 problems, 5 graphs.

Upon second thought, in the initial description, it says "for each of the following situations, draw the demand curve..." and there are 5 situations, and 5 graphs labeled A to E.

Graph B has an upward-sloping curve labeled "supply", so it's likely that Graph B is not a demand curve, and thus not applicable for any demand shift question. So perhaps for Problem 2, since it's about supply, and the statement is flawed, the intended answer might be that it doesn't cause a demand shift, but we have to choose from A-E.

Perhaps for Problem 2, the correct economic response is that supply increases, so price decreases, so the statement is wrong, but if we consider the effect on demand, nothing happens, so no shift, but no graph shows no shift.

I think there's a mistake in my earlier assignment.

Let me try this:

For Problem 1: milk on sale -> complement, so demand for eggs increases -> right shift -> Graph C

For Problem 2: more manufacturers -> supply increases -> price decreases -> but the statement says price increases, which is incorrect. However, if we ignore that and think what would make price increase, it would be increase in demand. So perhaps they want us to select a right-shift graph for the price increase part. But which one? Graph D is also right shift.

For Problem 3: health concerns -> demand for beef decreases -> left shift -> Graph E

For Problem 4: gun law -> demand for guns increases -> right shift -> Graph D (since C is taken)

For Problem 5: margarine on sale -> substitute, so demand for butter decreases -> left shift -> Graph A

Then Problem 2 is left with Graph B, which is supply. Perhaps in this context, Graph B is used to illustrate that supply shift causes price change, but the worksheet is for demand.

Maybe for Problem 2, the answer is B, even though it's supply, because the statement is about supply.

But the instruction is "draw the demand curve", so probably not.

Another possibility: in Graph B, although it says "supply", perhaps it's a typo, and it's meant to be demand, but upward-sloping demand is rare (Giffen goods), but not typical.

I think the most reasonable approach is to assign based on demand shifts only, and for Problem 2, since it's not a demand shift, but the only graph left is B, and it's supply, perhaps it's not used, but we have to choose.

Let's search for standard answers or think differently.

Perhaps for Problem 2, "more manufacturers enter" could be seen as increasing the number of buyers if manufacturers are also consumers, but that's unlikely.

I recall that in some curricula, for such questions, if the statement is about supply, they might have a separate section, but here it's mixed.

Let's count the graphs in the user's description: there are six graphs mentioned? No, in the text, it's "Graph A", "Graph B", etc., up to E, so five.

Perhaps Graph B is for a different purpose.

Let's read the very beginning: "For each of the following situations, draw the demand curve that best represents the following statements."

So all graphs should be demand curves. Therefore, Graph B with "supply" labeled is probably a mistake in the image or in my reading.

In the user's message, for Graph B, it says: "supply" — but perhaps it's "demand" and it's a typo in the description.

To resolve this, let's assume that all graphs are demand curves, and Graph B is upward-sloping, which is unusual, but for the sake of answering, we'll proceed with the logic.

For Problem 2: the statement is "the price of televisions will increase as more manufacturers enter" — which is economically incorrect, but if we take it as given that price increases, and we need to find which demand shift would cause price to increase, it would be an increase in demand. So right shift.

Among the right-shift graphs, C and D are both right shifts. We have two right-shift problems: 1 and 4, and possibly 2.

Prob 1: eggs demand increase -> C

Prob 4: guns demand increase -> D

Prob 2: if we say demand for TVs increases, then another right shift, but only two right-shift graphs.

Unless Graph B is considered, but it's upward.

Perhaps for Prob 2, since more manufacturers might lead to better products or advertising, increasing demand, so right shift, and we can use C or D, but they are taken.

I think I found a better way: let's list the answers as per standard textbook logic.

After re-thinking, here's the correct matching:

- Problem 1: Milk on sale -> complementary good, so demand for eggs increases -> demand curve shifts right -> Graph C

- Problem 2: More manufacturers enter -> this increases supply, which decreases price, so the statement "price will increase" is false. However, if we consider the demand side, no shift occurs. But since the worksheet likely expects a graph, and Graph B is supply, perhaps it's not for this. Maybe the answer is that no demand shift, but we have to choose. Perhaps for this, it's Graph B to indicate supply shift, but the title is demand.

I recall that in some versions of this worksheet, Problem 2 is matched with Graph B because it's about supply, but that doesn't make sense.

Another idea: in Graph B, although it says "supply", perhaps it's a demand curve for a Giffen good, but that's advanced.

Let's look at Problem 5: "Margarine is on sale (butter)" — so for butter, demand decreases -> left shift -> Graph A or E.

In many worksheets, Graph A is used for decrease in demand, Graph E for something else.

Perhaps Graph E is for a change in income or something.

Let's assign based on common practice:

Typically:
- Right shift: C or D
- Left shift: A or E
- B is invalid

For Prob 1: C
For Prob 3: E (beef demand decrease)
For Prob 4: D (guns demand increase)
For Prob 5: A (butter demand decrease)
For Prob 2: B, even though it's supply, because the statement is about supply causing price change.

And in some contexts, they include supply graphs for comparison.

So I'll go with that.

So final answers:

1. C
2. B
3. E
4. D
5. A

But let's verify Problem 2 with Graph B: Graph B shows an upward-sloping supply curve, and if supply shifts, but the graph doesn't show a shift, it's just a supply curve. The graph B has only one curve, no shift indicated. In the description, for Graph B, it's a single upward-sloping line labeled "supply", so it's not showing a shift, just a supply curve. Whereas other graphs show two curves for shift.

In Graph A, C, D, E, there are two demand curves (D1 and D2), indicating a shift. In Graph B, there is only one curve, labeled "supply", so it's not showing a shift at all.

For Problem 2, since more manufacturers enter, supply shifts right, but Graph B doesn't show a shift; it's just a supply curve. So it doesn't represent a shift.

This is confusing.

Perhaps for Problem 2, the correct answer is that there is no demand shift, so no graph, but since it's required, maybe it's not B.

Let's consider that in Problem 2, the statement is incorrect, so perhaps the demand curve doesn't shift, and the graph that shows no shift is not present, but all graphs show shifts except B, which is supply.

I think I need to accept that for Problem 2, the intended answer is B, as it relates to supply.

Perhaps " the price of televisions will increase" is a result of increased demand, and "more manufacturers enter" is red herring, but that doesn't make sense.

Another thought: if more manufacturers enter, they might collude or something, but that's not standard.

I recall that in some online sources, for similar worksheets, Problem 2 is matched with Graph B because it's about supply, and the graph is supply.

So I'll go with that.

So:

1. C
2. B
3. E
4. D
5. A

For Problem 5, "Margarine is on sale (butter)" — so for butter, demand decreases, and Graph A shows a left shift, which is correct.

Graph E also shows left shift, but we used E for Problem 3.

In Graph E, it's a left shift, same as A, but perhaps in some diagrams, A is for decrease, E for increase or something, but in the description, both A and E show left shifts? Let's assume from standard:

In many worksheets:
- Graph A: demand decreases (left shift)
- Graph C: demand increases (right shift)
- Graph D: demand increases (right shift) — perhaps for different reason
- Graph E: demand decreases (left shift) — but why two?

Perhaps Graph E is for a change in expected future price or something.

For Problem 3: health concerns -> immediate decrease in demand -> Graph E

For Problem 5: margarine on sale -> decrease in demand for butter -> Graph A

And for Problem 2: B

So I think that's the best we can do.

Final Answer:
1. C
2. B
3. E
4. D
5. A

But let's box it.

Note: For Problem 2, it's unconventional, but based on the graph labels, B is supply, and the statement is about supply, so it might be intentional.

So the answers are:

1. C
2. B
3. E
4. D
5. A

Final Answer:
1. C
2. B
3. E
4. D
5. A