1. Review of Microeconomics: Demand, Supply and Prices 1. Write answers to the following without looking them up or asking anyone else. 2. Correct or add to your answers as we go over them.

2. 1. Explain in detail.

3. 2. Explain in detail.

4. 3. Explain $100550 $95525 $90500 $85475 $80450 $75425 $70400 $65375

5. 4. Explain $10.00100 $9.50150 $9.00200 $8.50250 $8.00300 $7.50350 $7.00400 $6.50450

6. 5. Explain.

7. 6. Explain what happens at the price shown.

8. 7. Explain what happens at the price shown.

9. 8. Explain diminishing marginal utility.

10. 9. Explain the effect of diminishing marginal utility on demand.

11. 10. Explain. Also, what can make this happen? What cannot make this happen?

12. 11. For each category, give an example that would change the demand for iPods.

13. 12. Explain. Also, what can make this happen? What cannot make this happen?

14. 13. For each category, give an example that would change the supply for iPods.

15. 14. Explain. Also, what can make this happen? Is there anything else that can make this happen?

16. 15. Explain the income effect. How is it different from a change in consumer income?

17. 16. Explain the substitution effect. How is it different from a change in price of a substitute?

18. 17. Explain. Also, what can make this happen? Is there anything else that can make this happen?

19. 18. Explain. What caused the new price? What happened because of the new price?

20. 19. Explain. What caused the new price? What happened because of the new price?

21. 20. For each, what happens to the quantity sold? For each, what happens to price? a. Increase in demand b. Increase in supply c. Decrease in demand d. Decrease in supply

22. 21. Refer to the events you wrote for question #11. a. Which events would increase both the price and the quantity sold? b. Which events would increase the price but decrease the quantity sold? c. Which events would decrease the price but increase the quantity sold? d. Which events would decrease both the price and the quantity sold?

23. 22. Refer to the events you wrote for question #13. a. Which events would increase both the price and the quantity sold? b. Which events would increase the price but decrease the quantity sold? c. Which events would decrease the price but increase the quantity sold? d. Which events would decrease both the price and the quantity sold?

24. 23. Explain the difference.

25. 24. Explain how to estimate elasticity of demand.

26. 25. What happens to demand elasticity in a specific (rather than general market)?

27. 26. Explain how to calculate elasticity of demand

28. 27. Explain how a consumer is affected by demand elasticity.

29. 28. Explain the difference.

30. 29. Explain how to estimate elasticity of supply.

31. 30. Explain how to calculate elasticity of supply.

32. 31. Explain how a consumer is affected by supply elasticity.