Supply and Demand Test Review These practice questions will be very similar to the questions on your test tomorrow. I would write these down so you can study, especially if you get them wrong as we go through them today in class!

Define supply and demand Know the difference between quantity supplied and supply, and quantity demanded and demand

Know the steps to find a change in equilibrium in a market

3 steps! To determine the effects of any event, 1. Decide whether event shifts S curve, D curve, or both. 2. Decide in which direction curve shifts. 3. Use supply-demand diagram to see how the shift changes eq’m P and Q.

Know the difference between a normal good and an inferior good- and examples!

Know the difference between substitutes and complements- and examples!

What are the characteristics of a competitive market?

Draw a graph for the following situations: Suppliers experience an advance in technology in their factories for making tea The price of a good is raised

What is the equilibrium price? Quantity Demanded Quantity Supplied 1 44 7 32 9 10 13 14 5 18

Know how to label the areas of surplus and shortage on a graph for a market of a good.