Section 1 - Instruction

Let's do a quick recap! A change in a good's own price causes a movement along the demand curve. A change in any other factor—like income or tastes—causes the entire curve to shift.

Engagement Message

This distinction is key to understanding market changes. Are you ready to apply it?

Section 2 - Practice

Type

Multiple Choice

Practice Question

A local coffee shop lowers the price of a latte from 4to4 to 3.50. This causes:

A. The demand curve for lattes to shift to the right. B. The demand curve for lattes to shift to the left. C. A movement downward along the existing demand curve for lattes. D. A movement upward along the existing demand curve for lattes.

Suggested Answers

  • A
  • B
  • C - Correct
  • D
Section 3 - Practice

Type

Fill In The Blanks

Markdown With Blanks

Let's analyze substitutes and complements. Fill in the blanks to predict the market effect.

If the price of movie tickets (a complement to popcorn) decreases, the demand for popcorn will [[blank:increase]]. If the price of Android phones (a substitute for iPhones) decreases, the demand for iPhones will [[blank:decrease]].

Suggested Answers

  • increase
  • decrease
Section 4 - Practice
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