Honors Economics

Mr. Crawford

REVIEW
UNIT THREE
SUPPLY AND DEMAND

Structure:

  • 35 Multiple Choice questions (1 point each)
  • 5 Definition questions (1 point each)
  • 1 Brief with Viewpoint Graph (Viewpoint and Brief)  (10 points)

Content:
DEMAND

Law of Demand

CHANGE IN P= CHANGE IN Qd

INVERSE

  • DMU
  • YFX
  • SFX

CHANGE IN NPD= CHANGE IN D

  • TASTES
  • INCOME
  • MORE OR FEWER BUYERS
  • EXPECTATIONS
  • RELATED GOODS' PRICES
    • SUB=SAME
    • COMP=OPPOSITE

CHANGE IN D= PQ

CHANGE IN D= PQ

 SUPPLY

Law of Supply

 CHANGE IN P =  CHANGE IN Qs

DIRECT

  • DMR/IC
  • P X Q = TR

CHANGE IN NPD= CHANGE IN S

  • GOVERNMENT
    • TAXES/SUBSIDIES
    • PRICE CONTROLS
  • OTHER PROFIT OPPORTUNITIES
  • NUMBER
  • INVESTMENT IN TECHNOLOGY
  • COST OF RESOURCE
  • EXPECTATIONS

CHANGE IN S= PQ

CHANGE IN S= PQ

 
VOCABULARY

DEMAND
LAW OF DEMAND
QUANTITY DEMANDED
DEMAND CURVE
DEMAND SCHEDULE
SUBSTITUTION EFFECT
INCOME EFFECT
SHORT RUN/LONG RUN

 DIMINISHING MARGINAL UTILITY
SUPPLY
LAW OF SUPPLY
QUANTITY SUPPLIED
SUPPLY CURVE
SUPPLY SCHEDULE
INCREASING COSTS		 EQUILIBRIUM
SURPLUS
SHORTAGE
INVISIBLE HAND
NON-PRICE DETERMINANTS
 T.I.M.E.R.
G.O.N.I.C.E.