AP Macroeconomics

1.4 Demand Shift (Practice)

Market for Boba / Milk Tea (a normal good)

Price vs quantity demanded · drag D or point E

0246810246810Quantity of bobaPrice($)D1E

How-To

  1. 1. Read the scenario. Ask: did the price of boba change, or a determinant of demand?
  2. 2. Drag the curve left or right to shift demand, or drag point E along D to show a change in quantity demanded. Then tap Finalize.

Change in

Quantity Demanded

movement along the demand curve (caused by price change)

Law of Demand

Inverse relationship between price and quantity demanded

Change in

Demand

shift of the entire demand curve (caused by non-price determinants)

Non-price determinants

  • Preferences
  • Related
  • Income
  • Consumers
  • Expectations