1. Supply and Demand: Supply and Equilibrium

2. * What is the supply curve? * What is the difference between movements along the supply curve and changes in supply? * What factors shift the supply curve? (5) * How do supply and demand determine a market’s equilibrium price and quantity? * How does price move surplus or shortage markets back to equilibrium (should have an answer for each).

3. * Graphical representation of the relationship between the quantity supplied and price.

4. * Movements: when price changes we move along the supply curve * Changes: changes in supply shift the supply curve based on 5 factors, changes the quantity supplied at any given price.

5. * Input Prices * Prices of related goods or services * Technology * Expectations * Number of Producers

6. * Is the price where the quantity demanded equals the quantity supplied. * Where no individual would be better of doing something different.

7. * Price lowers to fix surplus * Price rises to fix shortage

8. Supply and demand is what determines the price of most things. Currently the housing inventory is the lowest it has been since April 2005. This is great news for people wanting to sell their house! The question many of our clients have is if they should sell now, or wait for prices to go up even more. Nobody knows for sure what is going to happen. One thing to consider is that as prices go up, that will free up more sellers who have been in a negative equity situation. If you choose to wait to sell your house you could have more competition. The more homes on the market means the supply/demand ratio will balance out and it could lessen the opportunity a seller has right now.

9. * Explain why by analyzing current trends in the housing market: Demand Supply Shortage Surplus