Economics: Demand and Supply

1. Define demand. What does the law of demand state? Express it in words, in symbols (clip art or images), and as a graph.

2. Define supply. What does the law of supply state? Express it in words, in symbols (clip art or images), and as a graph.

3. Discuss the five factors that cause demand curves to shift and give a specific example of each one.

4. Describe the five factors that shift the supply curve and what causes a movement along the supply curve.

5. What does it mean when a supply curve shifts to the left? Shifts to the right? Compare a shift of the curve to a movement along the curve.

6. Define elasticity of demand and describe how it is calculated; give examples of elastic and inelastic goods.

7. Describe equilibrium three ways: in words, with symbols, and as a labeled graph.

8. Describe how price acts as a signal in the marketplace to buyers and sellers.