Unit 2 Supply, Demand, and Elasticity

Unit 2:  Supply and Demand 

1. Law of Demand

2. Substitution effect 

3. Income effect 

4. Individual demand curve

5. Market Demand Curve

6. 5 factors that change the demand of a good

7. 1 factor that changes the quantity demanded of a good

8. Complementary goods

9. Substitution

10. Draw the following curves

1. Increase in QD

2. Decrease in QD

3. Increase in Demand 

4. Decrease in Demand 

11.  Price Elasticity of Demand (define and give equation)  

12.  Elastic demand (define, give examples, show on curve and what elasticity value)

13.  Inelastic demand (define, give examples, show on curve, and what elasticity value)

14.  Perfectly Inelastic demand (define, give examples, show on curve, and what elasticity value)

15.  Perfectly elastic demand (define, give examples, show on curve, and what elasticity value)

16.  Unit elastic demand (define, give examples, show on curve, and what elasticity value)

17.  Total Revenue Test:  (how does TR test show elastic, inelastic, and unit elastic demand)

18.  Supply

19.  Law of supply:

20.  Supply schedule:

21.  Market supply schedule:

22.  Draw the following curves

1. Increase in QS

2. Decrease in QS

3. Increase in Supply

4. Decrease in Supply 

23.  5 factors that change the supply of a good

24.  1 factor that changes the quantity supplied of a good

25.  Price Elasticity of Supply (define and give equation)  

26.  Elastic supply(define, give examples, show on curve and what elasticity value)

27.  Inelastic supply (define, give examples, show on curve, and what elasticity value)

28.  Income Elasticity of Demand (definition and formula):

29.  Normal Goods (and value of income elasticity):

30.  Inferior Goods (and value of  income elasticity):

31.  Cross elasticity of demand (definition and formula):

32.  Xed Substitutes(value) : 

33.  Xed  Complement (value):   

34.  Equilibrium Price (definition and show on a graph):  

35.  Shortage

36.  Surplus

37. Show on a Supply and Demand graph, tell changes in Price and Quantity, for :

1. Increase D

2. Increase S

3. Decrease S

4. Decrease D

38.  Tell what happens to P and Q when the following multiple shifts take place

1. Increase in S and D

2. Decrease in S and D

3. Increase in D and Decrease S

4. Decrease D and Increase S

39.  Show consumer and producer surpluses on an S and D curve 

40. 

1. Draw an S and D curve with a binding price ceiling 

2. Show the surplus /shortage created in the market

3. Show deadweight loss 

4. Show new consumer and producer surpluses

41.  

1. Draw an S and D curve with a binding price ceiling 

2. Show the surplus /shortage created in the market

3. Show deadweight loss 

4. Show new consumer and producer surpluses

42. Incidence of Tax