1. Unit 2 – Supply and Demand

2. Categories Terms / ConceptsDemandSupplyEquilibriumDeterminants 100 200 300 400 500

3.  Define Demand

4.  Define INFERIOR GOOD

5.  Where Quantity Supplied equals Quantity Demanded

6.  Explain SHORTAGE and draw a graph

7.  Explain SURPLUS and draw a graph

8.  How is market demand calculated?

9.  Define the Law of Demand

10.  Illustrate a change in Quantity Demanded using a graph.

11. What is the difference between Demand and Quantity Demanded?

12.  Why is the demand curve downward sloping?

13.  Define a supply schedule.

14.  What is the difference between Supply and Quantity Supplied?

15.  How is market supplied calculated?

16.  Illustrate a change in Quantity Supplied using a graph.

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

18. What happens if… The price of Pepsi increases Q PP S D Pepsi

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

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

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

22. What happens if… The price of Wine increases Q PP S D Grape Juice

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

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

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

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

27.  Explain how expectations of future prices affects DEMAND and SUPPLY.