Unit 2 – Supply and Demand

Categories Terms / ConceptsDemandSupplyEquilibriumDeterminants

 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P S D Pepsi

What happens if… The price of Coca Cola increases Q PP S D Pepsi

What happens if… The price of DVD players decreases Q PP S D DVDS

What happens if… There is a decrease in the price of Grapes Q PP S D Grape Juice

What happens if… The price of Wine increases Q P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.