1. What is a demand curve? 2. On a demand curve, on which axis is price shown? 3. On a demand curve, on which axis is quantity demanded shown? 4. What causes movement along a demand curve? 5. Give two reasons why a demand curve might shift. 6. What is a supply curve? 7. What causes movement along a supply curve? 8. Give two reasons why a supply curve might shift.
Critical Thinking Skills Demand Questions
1. Draw a demand curve, which represents the demand for Cadbury’s chocolate bars.
(a) Show what happens on the demand curve if Cadbury’s increase its prices by 50%.
(b) Show what happens on the demand curve if Cadbury’s runs a ‘20% Off’ sales promotion
(c) Show what happens to the demand curve if Cadbury’s keeps its prices unchanged but launches a very successful advertising campaign.
2. Describe the factors that can influence the demand for orange juice.
3. Tropeze Limited produces orange juice. It conducted market research to discover what price people are willing to pay for one litre of juice. After asking 200 people, they recorded the results in a demand schedule. Examine the table and draw the demand curve for orange juice. Remember to label the graph and the axes.
