April 7

Notebook Check Due Wednesday
1. Demand Notes
2. Demand Questions
3. Demand Changes Questions
4. Supply Changes
5. Supply/Demand Questions
6. Supply/Demand Shifts
7. Equilibrium Questions
8. Elasticity Questions
9. Big Apple Game
10. Supply/Demand Review

Supply and Demand Review Questions:

SUPPLY AND DEMAND REVIEW

1.     Explain the law of supply using a graph on the your paper

2.     Explain the law of Demand using a graph on your paper

3.     What happens to the demand for Hot Dog Buns if hot dogs are determined to cause cancer?

4.     Graph and explain a shortage

5.     What is an inelastic good? Explain why it is inelastic

6.     What happens to the demand for Milk if the price of cereal falls to an all time low?

7.     Graph and give reasons an especially warm summer has resulted in more ice cream being purchased. As a result, may more ice cream trucks have been seen throughout the city streets?

8.     The goo material in lava lamps becomes very expensive. Which curve is affected, how and why?

9.     What is an elastic good?  Give an example.

10. What is the point called where supply and demand intersect?

11. What is the market clearing price and why?

12. Graph an increase in demand and a decrease in supply

13. Explain how the “price of inputs” affects supply

14. What is the law of diminishing marginal return?

15. Explain how demand changes due to the income effect

16. What is the law of demand?

17. Explain how demand is affected by the complementary effect.

18. What is a supply schedule?

19. Goods that have no substitute are what types of demand?

20. Name 4 reasons why supply changes

21. What happens to price if there is a decrease in supply?

22. What happens to price if there is an increase in supply and a decrease in demand?

23.  How can you have a price increase if supply is up and demand is up?

24. What determines the price and the quantity produced of most goods?

25. How can a shortage develop?

26. What 4 things will cause a demand curve to shift?

27. How can future price affect current demand?

28. How is elasticity determined?

29. What is a price floor?  Give an example.

30. What is a price ceiling?  Why would the government implement this?