When the whole curve moves

Civics & Economics · Economics · ages 14-16

Name ______________________ Date ____________

A price rise alone shifts the whole demand curve.
Circle one: True False
Which of these shifts the whole demand curve?
- The price of the good itself
- Tastes
- Nothing ever
Which of these shifts the whole supply curve?
- Weather
- The price of the good itself
- The colour of the shop
After the frost, what happens at the new crossing?
- Higher price, less coffee sold
- Lower price, more coffee sold
- Nothing changes
Frost destroys half a coffee crop. Which curve moves?
- Demand, since drinkers change
- Supply, since growing turns costly
- Neither curve
What does other things equal mean?
- Everything moves at once
- Only one change moves at a time
- Prices freeze forever
Kim calls a price-cut buying spree a demand shift. What slipped?
- Demand never moves
- Supply moved instead
- A cheaper price slides along the curve, nothing shifted
Incomes rise and coffee is a normal good. What is the new crossing?
- Higher price, more coffee sold
- Lower price, less coffee sold
- Same price, more coffee sold

Answer key

For grown-ups. Fold this page away before handing over the rest.

False · Price changes slide along the curve. Shifts need other factors.
Tastes · Tastes sit off the axes, so a fad moves the whole curve.
Weather · Weather changes growing costs, moving the whole curve.
Higher price, less coffee sold · Supply left meets demand higher up, cutting quantity.
Supply, since growing turns costly · A ruined harvest hits growers, so supply shifts left.
Only one change moves at a time · Holding the rest fixed lets one change speak clearly.
A cheaper price slides along the curve, nothing shifted · Price alone cannot shift. Only off-axis factors shift curves.
Higher price, more coffee sold · Richer buyers lift demand right, raising price and quantity.