1. A change in demand causes a ____ (movement along/shift of) the demand curve. A change in quantity demanded causes a ______ (movement along/ shift of ) the demand curve.

2. Circle the variables that change as we move along the demand curve for pencils and cross out those that are assumed to be fixed.

Quantity of pencils demanded

Number of consumers

Price of pencils

Price of pens

Consumer income

3. Online Movies. Consider the effects of online distribution of movies. A decrease in the price of online movies shifts the demand for DVD movies to the ____ (left, right). A decrease in downloading time shifts the demand for DVD movies to the ____ (left, right).

4. Arrow up or down: The market demand curve for a product will shift to the right when the price of a substitute good ___, the price of a complementary good _____, consumer income ____, and the population ______.

5. Arrow up or down: An increase in demand for a product ____ the equilibrium price and ____ the equilibrium quantity.

6. Market Effects of Increased Income. Consider the market for restaurant meals. Use a demand and supply graph to predict the market effects of an increase in consumer income. Arrow up or down: The equilibrium price of restaurant meals will ____, and the equilibrium quantity of restaurant meals will _____.

7. Public versus Private Colleges. Consider the market for private college education. Use a demand and supply graph to predict the market effects of an increase in the tuition charged by public colleges. Arrow up or down: The equilibrium price of a private college education will ___ and the equilibrium quantity will _____.

8. Gas Prices and New Gas Guzzlers. Use a demand and supply graph to predict the implications for the market for new full-size SUVs. Arrow up or down: The equilibrium price of a full-size SUV wills ____, and the equilibrium quantity will______.