Chapter 4 
Problem Set 1
Demand

You are given various goods or services followed by a statement. 

Decide if this statement would shift the demand curve left or right or would not change it.

Good:  porterhouse steak (lobster if you don't like meat)

• Your income declines.

Good: sun screen  SPF54

• The ozone layer is depleting more rapidly than originally thought.

Good:  orange juice

• The price of lemonade rises.

Good: tennis balls

• The price of tennis rackets doubles.

Good: air line tickets

• The all airlines reduce their fares by 10%.

Good:  wood burning stoves

• The price of fuel oil is expected to fall rapidly.

[BACK to exercises]