Exploring Supply and Demand
First decide if the change affects demand, supply, or both, then decide how the price and quantity will be affected.

1. If Jackie's income rises, what happens to her demand for airplane trips? If the income of most consumers of air travel rises (and air travel is a normal good), what will happen to the market equilibruim price P and quantity Q of this good?

P Rises P Falls P Indeterminant
Q Rises Q Falls Q Indeterminant

When you have selected BOTH price and quantity,
press


2. If the taste for sneakers severely declines, what happens to their price and the quantity sold?

P Rises P Falls P Indeterminant
Q Rises Q Falls Q Indeterminant

When you have selected BOTH price and quantity,
press


3. If the price of materials used to make sneakers rises sharply, what happens to the price and the quantity sold of sneakers?

P Rises P Falls P Indeterminant
Q Rises Q Falls Q Indeterminant

When you have selected BOTH price and quantity,
press


4. If the technology for making some communications device (say, cellular telephones) leaps forward, what is most likely to happen to the price and the quantity sold?

P Rises P Falls P Indeterminant
Q Rises Q Falls Q Indeterminant

When you have selected BOTH price and quantity,
press


5. Consider the supply and demand for coffee in London. Suppose the price of tea rises sharply. If coffee is a substitute good for tea, what happens to the price and quantity of coffee?

P Rises P Falls P Indeterminant
Q Rises Q Falls Q Indeterminant

When you have selected BOTH price and quantity,
press


6. A new rumor sweeps the country that eggs are great diet food and they don't even raise cholesterol levels. At the same time, advances in chicken husbandry increase the number of eggs that can be produced. What happens to the price and quantity of eggs? (hint: both supply and demand are affected)

P Rises P Falls P Indeterminant
Q Rises Q Falls Q Indeterminant

When you have selected BOTH price and quantity,
press


The number and percent correct based on your most recent attempt at each question can be found here:


I need more help! Go back to the beginning!


You got correct, and incorrect. The percentage right of the total is %.


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Plans for Future Development

I plan to add some questions covering changes in both relationships. All comments and questions are welcome!

Maintained by Kim Sosin. Comment via EMail: ksosin at mail.unomaha.edu

Kim Sosin
Chair, Department of Economics
Co-Director, UNO Center for Economic Education
College of Business Administration
University of Nebraska at Omaha
Omaha, NE 68182