Shifts in Demand Practice

The population of California has increased to 38 million people. What will happen to the demand for houses?

• 
• A decrease in demand due to oversupply of houses.

• An increase in demand due to higher population density.

• A temporary spike in demand followed by a decrease.

The Apple headquarters is expanding, bringing more tech employees to the area. What will happen to the demand for restaurants and grocery store areas?

• 
• There will be no shift in the demand curve; it is a price effect.

• The demand curve will shift to the left due to decreased demand.

• The demand will remain constant regardless of the expansion.

What will happen to the demand for houses? as living in condos becomes fashionable in downtown areas?

• 
• Increase in demand for houses due to higher popularity.

• Decrease in demand for houses as people prefer condos.

• Demand for houses will remain constant regardless of condos.

What will happen to the demand for orange juice right now? due to the expectation of a hard freeze destroying the future crop of oranges?

• 
• Increase in demand due to scarcity of oranges.

• Decrease in demand as consumers switch to other juices.

• Demand will remain unchanged regardless of the freeze.

What will happen to the demand for houses? as apartments have gone way up in rental prices?

• 
• Demand for houses will increase significantly.

• Demand for houses will decrease due to higher rental prices.

• Demand for houses will remain unchanged regardless of rental prices.

The price of beef rises. What will happen to the demand for fish??

• 
• The demand for fish will decrease as consumers prefer beef.

• No shift in demand curve. It is a price effect.

• The demand for fish will remain unchanged regardless of beef prices.

The prices of homeowners insurance significantly increases for earthquakes, floods, and fires in California. What will happen to the demand for houses?

• 
• Increase in demand due to higher insurance costs.

• Decrease in demand as people move away from California.

• Demand becomes perfectly inelastic.

Housing prices are expected to rise in April next year. What will happen to the demand for houses now?

• 
• Increase in demand due to anticipated higher prices.

• Decrease in demand as buyers wait for lower prices.

• Demand will become perfectly elastic.

Answer explanation

Demand for houses now will increase.

If there is an expectation that houses will be more expensive in the future,

it would be reasonable to see the demand for houses increase now while they're less expensive.

The price of gasoline goes down. What will happen to the demand for motorcycles??

• 
• There will be a shift in the demand curve to the right.

• No shift in demand curve. It is a price effect.

• The demand for motorcycles will decrease as people prefer cars.

More people move into the Bay Area to work in tech companies. What will happen to the demand for apartments in the Bay Area??

• 
• Increase in demand due to higher population.

• Decrease in demand as more people leave the area.

• Demand remains constant regardless of population changes.