Economic

Chapter 4 Pre-lecture Assignment ECON 2206

The following questions and exercises are meant to complement the reading assignments from the text. They will

prepare you for the material presented in the lectures. Read the text first and then write or type out the answers to

the following questions. It is okay to use definitions right out of the textbook. When asked for examples however, be

sure to ones that are different from those in the text.

Your answers should be typed (or written) and saved as a pdf and uploaded to D2L (in D2L, choose the Assessments tab

and then Dropbox.) In Word you can choose to save your document as a pdf, or another option is Cam Scanner, which is

a nice app you can put on your phone to turn pictures into a pdf and then you can upload the pdf directly to D2L. Please

do not restate the questions in your answers: I only want to read your answers. When you are writing out an answer,

number your answers with the associated number on the question and use complete sentences and punctuation in your

text. Finally, leave at least one row in between the answers for each question. (In a nutshell, I want something that is

easy to read and easy to add comments to if I want. Thanks in advance!)

1. Demand (for the table and graph, you can write out your answers on a different sheet of paper if you wish.)

a. Define the law of demand.

b. Explain “quantity demanded”.

c. Pick a product that you buy and give an example of how the Law of Demand applies in your life. Create

your individual buyer’s demand schedule for your example (see the table in Figure 1 in Chapter 4.) More

specifically, write down a variety of prices for the good in your example and then the corresponding

quantities demanded.

Price Quantity Demanded

d. Draw a graph with price on the vertical axis and quantity on the horizontal axis and plot your data. Be sure to label both the price and quantity axis.

2. What are the factors that will “shift a demand curve”? (These are the nonprice determinants of demand – check

your text for clues.)

a. Think of an example from one of these factors that will shift your demand curve and say which way your

curve will shift (right for an increase or left for a decrease.)

3. Explain what “change in quantity supplied” is.

4. Explain what a “change in supply” is.

5. What factors will shift a supply curve?

6. When you have a demand curve and a supply curve that intersect, what do you call the intersection?

a. What is special about the price at this intersection (i.e. how does the price influence suppliers and

consumers?)