Chapter 4 question 7. Using supply and demand diagrams, show the effect of the following events on the market for personal computers. A. The price of computer chips falls. B. There is a rise in consumer incomes C. The price of computer software rises D. Universities require incoming freshmen to have their own personal computers. 2. a. Shift in Demand. A shift in demand means that at any price (and at every price), the quantity demanded will be different than it was before. Following is an example of a shift in demand due to an income increase. Step 1. Draw the graph of a demand curve for a normal good like pizza. Pick a price (like P 0). Identify the corresponding Q 0.