1. S&D: Demand Shifts What is the equilibrium price?
If the quantity demanded is 32, is there a shortage or a surplus?
If the price is $15 is there a shortage or a surplus?
Refer to Figure 6.1, the graph on Equilibrium in the Pizza Market, on p. 165.

2. Remember: Determinants of Demand
Change in real income
Normal goods
Inferior goods
Change in price of substitutes or complements
Change in consumer expectations
Growth in population
Change in consumer tastes

3. Demand Shifts for Pizza
EQ price?
Price for hamburgers increases, what will happen to the demand for pizzas?
New EQ price?
Refer to Figure 4.6, the graph on An Increase in the Market Demand for Pizza, on p.119.

4. How demand shifts affect PRICE
If increase in D =
Price will increase
If decrease in D =
Price will decrease
Price changes at all quantities.

5. If the price of airline tickets increase, what will happen to the demand for hotel rooms? What will happen to the price of hotel rooms?