AP Micro Examples: Change in Quantity Demanded vs. Change in Demand Scenarios

📚 Quick Study Guide

• 🍎 Change in Quantity Demanded: 📈 A movement *along* the demand curve caused *only* by a change in the price of the good itself. Think of it as sliding up or down the existing curve.
• 🚗 Change in Demand: ➡️ A shift of the *entire* demand curve (left or right) caused by factors other than the price of the good itself. These factors can include:
  • 💰 Income: (Normal vs. Inferior Goods)
  • 🍔 Price of Related Goods: (Substitutes and Complements)
  • 🎯 Tastes and Preferences:
  • 📣 Expectations: About future prices or income
  • 👥 Number of Buyers:
• 📝 Key Difference: Change in quantity demanded is a *response* to a price change. Change in demand is a *shift* in the underlying willingness and ability to buy at *all* prices.

Practice Quiz

1. What causes a change in quantity demanded?
   1. A change in consumer income.
   2. A change in the price of a related good.
   3. A change in the price of the good itself.
   4. A change in consumer tastes and preferences.
2. If the price of coffee increases, what is the likely effect on the demand for tea (assuming tea and coffee are substitutes)?
   1. A decrease in the demand for tea.
   2. An increase in the quantity demanded for tea.
   3. A decrease in the quantity demanded for tea.
   4. An increase in the demand for tea.
3. Which of the following will NOT cause a shift in the demand curve for pizza?
   1. A change in the price of pizza.
   2. A change in consumer income.
   3. A change in the price of mozzarella cheese (an ingredient in pizza).
   4. A change in the number of pizza restaurants in the area.
4. Suppose consumers expect the price of gasoline to increase next week. What is the likely effect on the demand for gasoline this week?
   1. A decrease in the quantity demanded for gasoline.
   2. An increase in the demand for gasoline.
   3. A decrease in the demand for gasoline.
   4. An increase in the quantity demanded for gasoline.
5. If income increases and a good is considered an inferior good, what happens to the demand for that good?
   1. Demand increases.
   2. Quantity demanded increases.
   3. Demand decreases.
   4. Quantity demanded decreases.
6. A sale on hotdogs, what kind of change will occur?
   1. A shift in the demand curve.
   2. A shift in the supply curve.
   3. A change in the quantity demanded.
   4. A change in the quantity supplied.
7. If the government imposes a new tax on the production of cars, which of the following is most likely to occur?
   1. A decrease in the demand for cars.
   2. An increase in the demand for cars.
   3. A decrease in the quantity demanded of cars.
   4. There will be movement along the supply curve.