Unit 2 – Supply and Demand
Categories
Terms / Concepts
Demand
Supply Equilibrium
Determinants
100 100 100 100 100
200 200 200 200 200
300 300 300 300 300
400 400 400 400 400
500 500 500 500 500
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
S
D
Pepsi
What happens if… The price of Coca Cola increases
Q
P
S
D
Pepsi
What happens if… The price of DVD players decreases
Q
P
S
D
DVDS
What happens if… There is a decrease in the price of Grapes
Q
P
S
D
Grape Juice
What happens if… The price of Wine increases
Q
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.