Chapter 5: Demand and Supply

Name ______Date ______Period ___

1. What was the introduction story about Carrie Underwood trying to explain?

2. Making a purchase depends on what two things?

3. What is Quantity Demanded?

4. What is Demand?

5. Draw an example of your demand schedule for tennis shoes. Then Draw a curve.

6. What is the market Demand?

7. What does the law of demand state?

8. What three factors cause consumers to react in predictable ways to a change in the price of a good or service?

9. What is the difference between a shift in the demand curve and a movement along the curve? DRAW IT!

10. What 6 factors are Demand Shifters? 11. What is Quantity Supplied?

12. What is Supply?

13. Analyze Figure 5.4… When the price goes up, does Jamie sell more or less tacos? Why?

14. What does the law of supply state?

15. What do economists call a movement along the curve?

16. What are the six Supply Shifters?

17. What is elasticity?

18. Please write out the demand elasticity equation.

19. What does it mean to be unit elastic?

20. Analyze Figure 5.6… A result greater than 1 is ______and a result of less than one is ______. Explain this statement with the examples given. Why would toothpaste be more inelastic than an energy bar? Draw an inelastic demand curve and an elastic demand curve. 21. What is the total revenue test?

22. Analyze the Key Concept Figure… What does the total revenue test tell us about energy bars and toothpaste. As the price goes up…

23. What are the four factors that influence elasticity of demand?

24. Please write out the equation for supply elasticity.

25. What are the four factors that influence elasticity of supply?

26. Examine Figure 5.7… A result of 1 or greater is ______and a result of less than one is ______. Explain this statement with the examples that are given. Why would Bananas be more inelastic than yogurt? Draw an inelastic supply curve and an elastic supply curve. 27. How do demand and price interact?

28. What can cause the demand to change?

29. How do supply and price interact?

30. What can cause the supply to change?

31. How are consumers affected by demand elasticity? Give an example of a good that is inelastic to consumers and explain why. Give an example of a good that is elastic to consumers and explain why.

32. How are suppliers affected by supply elasticity? Give an example of a good that is inelastic to suppliers and explain why. Give an example of a good that is elastic to supplier and explain why. Name ______Date ______Period ___

Chapter 6: Markets, Equilibrium, and Prices

1. What is market Equilibrium? 2. What is Equilibrium Price and Equilibrium Quantity? 3. Analyze Figure 6.2… What is the Equilibrium price and quantity of watermelon? Draw the graph. 4. Why is a farmers market a good place to witness communication that passes between consumers and producers? 5. What is disequilibrium? 6. Shortages result when we have what? 7. Surpluses result when we have what? 8. Please draw a surplus and a shortage graph, use figure 6.3. 9.