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Unit 2 – Supply and Demand

Unit 2 – Supply and Demand. Categories Terms / ConceptsDemandSupplyEquilibriumDeterminants 100 200 300 400 500

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Unit 2 – Supply and Demand

Categories

Terms / Concepts

Demand

Supply Equilibrium

Determinants

100 100 100 100 100

200 200 200 200 200

300 300 300 300 300

400 400 400 400 400

500 500 500 500 500

Define Demand

Define INFERIOR GOOD

Where Quantity Supplied equals Quantity Demanded

Explain SHORTAGE and draw a graph

Explain SURPLUS and draw a graph

How is market demand calculated?

Define the Law of Demand

Illustrate a change in Quantity Demanded using a graph.

What is the difference between Demand and Quantity Demanded?

Why is the demand curve downward sloping?

Define a supply schedule.

What is the difference between Supply and Quantity Supplied?

How is market supplied calculated?

Illustrate a change in Quantity Supplied using a graph.

What is the relationship between quantity and price when looking at supply?

What happens if… The price of Pepsi increases

Q

P

S

D

Pepsi

What happens if… The price of Coca Cola increases

Q

P

S

D

Pepsi

What happens if… The price of DVD players decreases

Q

P

S

D

DVDS

What happens if… There is a decrease in the price of Grapes

Q

P

S

D

Grape Juice

What happens if… The price of Wine increases

Q

P

S

D

Grape Juice

This determinant deals with changing attitudes of consumers toward a particular product.

This determinant deals with goods that are used and purchased together.

Explain how Business Taxes affects the market (Supply or Demand?)

Explain the effect of a Change in Income for Normal and Inferior goods.

Explain how expectations of future prices affects DEMAND and SUPPLY.