# Chapter 4: Understanding Demand

Size: px
Start display at page:

Transcription

1 SCHS SOCIAL STUDIES What you need to know UNIT TWO 1. What a competitive market is and how it is described by the supply and demand model 2. What a supply curve shows 3. The difference between a movement along and a shift of a curve 4. What factors will shift a curve Terms you should know Demand Law of Demand Substitution effect Income Effect Demand Schedule Market Demand Schedule Demand Curve Ceteris Paribus Normal Good Inferior Good Complements Substitutes Elasticity of Demand Inelastic Elastic Unitary Elastic Total Revenue

2 4-1 Summary: Fill in the missing words. The states that a good s price has an important effect on the amount of that good people will buy. The lower the price, the more consumers will buy. Similarly, the higher the price, the less consumers will buy. More people will buy a slice of pizza priced at \$1 than at \$10. The law of demand results from two patterns of human behavior. The first, known as the, says that as the price of a good rises, people are more likely to alternative goods. When the price of pizza becomes more expensive, compared to other foods like tacos, people are more likely to buy those other foods. The result is that the demand for pizza drops. However if the price of pizza drops, consumers are more likely to substitute pizza for other choices. This causes the demand for pizza to. The other pattern is known as the. When the price of pizza and other goods rise, people are likely to feel poorer. The income effect takes place when a consumer responds to a price increase by spending more on that good, even though it is more expensive. They spend more, but usually buy less. A illustrates the quantities demanded at each price by consumers in the market. The axis shows price, and the axis show quantity demanded. Because demand rises as prices fall, the demand curve slopes down and to the right. The demand curve shows the relationship between a good s price and the demand for that good. LABEL AND COMPLETE THE FOLLOWING MARKET DEMAND CURVE.

3 Fill in the key term the example illustrates in the space provided. 1. The higher the price of pizza, the fewer slice people will buy 2. Eating salad or tacos instead of pizza when the price of pizza goes up 3. Buying fewer slices of pizza when rising prices reduce real income 4. Price Quantity Price Quantity

5 Answer the following questions in the space provided. 1. What condition must exist to make a demand curve accurate? 2. What happens to a demand curve when there is a change in factors (other than price) that can affect consumers decisions about purchasing the good? 3. How does consumer income affect the demand for normal and inferior goods? 4. How does consumer expectation affect demand for certain goods? 5. Explain how the baby boom generation affected demand for certain goods. 6. How are consumer tastes and advertising related? 7. Explain how demand for a good can affect demand for a related good. 8. Give an example of a substitute good.

7 Supply the missing information in the spaces provided. Calculating Elasticity (Provide a formula or numerical value.) 1. Computation of elasticity of demand: 2. Elastic demand: 3. Inelastic demand: 4. Unitary elastic demand: Factors Affecting elasticity (How does each affect elasticity?) 5. Substitutes: 6. Necessities vs. luxuries: 7. Changes over time: Elasticity and revenue (Define and explain.) 8. Total revenue: 9. How elasticity affects a company s pricing:

### Demand- how much of a product consumers are willing and able to buy at a given price during a given period.

Ch. 4 Demand Ch. 4.1 The Demand Curve (Learning Objective- explain the Law of Demand) In your world- What are the goods and services that you demand? What happens to your buying when the price goes up

### Chapter 4:2: SECTION 2 SHIFTS IN DEMAND CURVE:

Chapter 4:2: SECTION 2 SHIFTS IN DEMAND CURVE: Objectives: We will study the factors that create changes in demand that can cause a shift in the demand curve. Give an example of how a change in demand

### Chapter 4: Demand Section 2

Chapter 4: Demand Section 2 Objectives 1. Explain the difference between a change in quantity demanded and a shift in the demand curve. 2. Identify the factors that create changes in demand and that can

### Unit 2: Demand, Supply, and Consumer Choice

Unit 2: Demand, Supply, and Consumer Choice 1 DEMAND DEFINED What is Demand? Demand is the different quantities of goods that consumers are willing and able to buy at different prices. (Ex: You are able

### Demand. How do we decide what to buy? Chapter. on the go. Essential Question, Chapter 8. Section 1 Understanding Demand

Chapter 8 Demand Essential Question, Chapter 8 How do we decide what to buy? Section 1 Understanding Demand Section 2 Shifts in the Demand Curve Section 3 Elasticity of Demand To on the go To study anywhere,

### Multiple Choice Identify the letter of the choice that best completes the statement or answers the question.

Final day 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. What determines how a change in prices will affect total revenue for a company?

### Demand and Supply. Chapter 2 pages 18-24, 27-3-, 33-34

Demand and Supply Chapter 2 pages 18-24, 27-3-, 33-34 Markets Market- where buyers and sellers come together to carry out an economic transaction Markets can be physical places where goods/services are

What are the effects of a high gas price on buying plans? You can see some of the biggest effects at car dealers lots, where SUVs remain unsold while sub-compacts sell in greater quantities. But how big

### Chapter 6 Elasticity: The Responsiveness of Demand and Supply

Economics 6 th edition 1 Chapter 6 Elasticity: The Responsiveness of Demand and Supply Modified by Yulin Hou For Principles of Microeconomics Florida International University Fall 2017 The Price Elasticity

### Chapter 6 Elasticity: The Responsiveness of Demand and Supply

hapter 6 Elasticity: The Responsiveness of emand and Supply 1 Price elasticity of demand measures: how responsive to price changes suppliers are. how responsive sales are to changes in the price of a related

### Elasticity. Shape of the Demand Curve

Lecture 4 Elasticity Eric Doviak Principles of Microeconomics Shape of the Demand Curve When prices change, change in quantity demanded depends on shape of demand curve Consumer 1 has a very elastic demand

### 1. T F The resources that are available to meet society s needs are scarce.

1. T F The resources that are available to meet society s needs are scarce. 2. T F The marginal rate of substitution is the rate of exchange of pairs of consumption goods or services to increase utility

### 1.2.3 Price, Income and Cross Elasticities of Demand

1.2.3 Price, Income and Cross Elasticities of Demand Price elasticity of demand The price elasticity of demand is the responsiveness of a change in demand to a change in price. The formula for this is:

### CH 5 sample questions - 80

Class: Date: CH 5 sample questions - 80 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The price elasticity of demand measures the that results from a.

### TheRevisionGuide (www.therevisionguide.com) is a free online resource for Economics and Business Studies.

TheRevisionGuide.com Accelerating your potential Economics Revision AS Economics Demand Notes by: Apsara Sumanasiri Student Name : Date:. TheRevisionGuide (www.therevisionguide.com) is a free online resource

### CHAPTER 2: DEMAND AND SUPPLY

2.3 THE MARKET CHAPTER 2: DEMAND AND SUPPLY CIA4U Ms. Schirk A market can be: A physical place where goods are bought and sold A collective reference to all the buyers and sellers of a particular good

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MBA 640, Survey of Macroeconomics Fall 2006, Quiz #2 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The price elasticity of demand is defined

### 2007 Thomson South-Western

Elasticity... allows us to analyze supply and demand with greater precision. is a measure of how much buyers and sellers respond to changes in market conditions THE ELASTICITY OF DEMAND The price elasticity

### Understanding Supply. Chapter 5 Section Main Menu

Understanding Supply What is the law of supply? What are supply schedules and supply curves? What is elasticity of supply? What factors affect elasticity of supply? The Law of Supply According to the law

### Elasticity and Its Applications. Copyright 2004 South-Western

Elasticity and Its Applications 5 Copyright 2004 South-Western Copyright 2004 South-Western/Thomson Learning Elasticity... allows us to analyze supply and demand with greater precision. is a measure of

### 2013 sample MC questions - 90

Class: Date: 2013 sample MC questions - 90 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The price elasticity of demand measures the that results from

### Introduction. Consumer Choice 20/09/2017

Consumer Choice Introduction Managerial Problem Paying employees to relocate: when Google wants to transfer an employee from its Seattle office to its London branch, it has to decide how much compensation

### UNIT 4 PRACTICE EXAM

UNIT 4 PRACTICE EXAM 1. The prices paid for resources affect A. the money incomes of households in the economy B. the allocation of resources among different firms and industries in the economy C. the

### Figure 4 1 Price Quantity Quantity Per Pair Demanded Supplied \$ \$ \$ \$ \$10 2 8

Econ 101 Summer 2005 In class Assignment 2 Please select the correct answer from the ones given Figure 4 1 Price Quantity Quantity Per Pair Demanded Supplied \$ 2 18 3 \$ 4 14 4 \$ 6 10 5 \$ 8 6 6 \$10 2 8

### Topic 4c. Elasticity. What is the difference between this. and this? 1 of 23

Topic 4c Elasticity What is the difference between this and this? 1 of 23 Defining and Measuring Elasticity (I) Price elasticity of demand Ø The price elasticity of demand is the ratio of the percent change

### Unit I The Principles of Economics

Economics Chapters 1-2 & 4-6 Duke Chapter 1 Unit I The Principles of Economics Explain the difference between a need and a want. Explain the difference between goods and services. Scarcity - Find three

### THE TWO MAIN MARKET FORCES: DEMAND AND SUPPLY. Instructor: Ghislain Nono Gueye

THE TWO MAIN MARKET FORCES: DEMAND AND SUPPLY Instructor: Ghislain Nono Gueye 1 The concept of demand You demand a good/service when you: - Want it - Can afford it - Plan to buy it You are not demanding

### Lesson-9. Elasticity of Supply and Demand

Lesson-9 Elasticity of Supply and Demand Price Elasticity Businesses know that they face demand curves, but rarely do they know what these curves look like. Yet sometimes a business needs to have a good

### ECON 251. Exam 1 Pink. Fall 2013

ECON 251 1. By definition, opportunity cost is a. The value of the best alternative b. The sum of the value of all available alternatives c. The amount of money it takes to buy an item d. Always greater

### Chapter 2 Market analysis

Chapter 2 Market analysis Market analysis is concerned with collecting and interpreting data about customers and the market so that businesses adopt a relevant marketing strategy. Businesses carry out

### Ch. 7 outline. 5 principles that underlie consumer behavior

Ch. 7 outline The Fundamentals of Consumer Choice The focus of this chapter is on how consumers allocate (distribute) their income. Prices of goods, relative to one another, have an important role in how

### EC101 DD/EE PRACTICE Midterm 1 October 3, 2017 Version 09

EC101 DD/EE PRACTICE Midterm 1 October 3, 2017 Version 09 Name (last, first): Student ID: U - - Discussion Section: Signature EC101 DD/EE Practice Midterm 1 F17 INSTRUCTIONS (***Read Carefully***): ON

### Principles of MicroEconomics: Econ102

Principles of MicroEconomics: Econ102 Price Elasticity of Demand: The responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of

### CIE Economics AS-level

CIE Economics AS-level Topic 2: Price System and the Microeconomy a) Demand and supply curves Notes Demand: Effective demand is the quantity that consumers are willing to buy at the current market price.

### Multiple choice questions 1-60 ( 1.5 points each)

NAME: STUDENT ID: Final Exam ECON 101, Section 2 summer 2004 Ying Gao Instructions Please read carefully! 1. Print your name and student ID number at the top of this cover sheet. 2. Check that your exam

### DEMAND ANALYSIS. Samir K Mahajan, M.Sc, Ph.D.,UGC-NET Assistant Professor (Economics)

DEMAND ANALYSIS Samir K Mahajan, M.Sc, Ph.D.,UGC-NET Assistant Professor (Economics) MEANING OF DEMAND Demand is effective desire which can be fulfilled. Demand must satisfy the following prerequisites:

### Chapter 6 Lecture - Elasticity: The Responsiveness of Demand and Supply

Chapter 6 Lecture - Elasticity: The Responsiveness of Demand and Supply 1 The Price Elasticity of Demand and Its Measurement We define price elasticity of demand and understand how to measure it. Although

### 3 CHAPTER OUTLINE CASE FAIR OSTER PEARSON. Demand, Supply, and Market Equilibrium. Input Markets and Output Markets: The Circular Flow

CASE FAIR OSTER PEARSON PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N Prepared by: Fernando Quijano w/shelly Tefft 2of 68 Demand, Supply, and Market Equilibrium 3 CHAPTER OUTLINE Firms and

### Multiple Choice Part II, A Part II, B Part III Total

SIMON FRASER UNIVERSITY ECON 103 (2007-2) MIDTERM EXAM NAME Student # Tutorial # Multiple Choice Part II, A Part II, B Part III Total PART I. MULTIPLE CHOICE (56%, 1.75 points each). Answer on the bubble

### .the key ideas. Webnote 122

.the key ideas. 1 Webnote 122 yed-income demand xed-cross demand pes-supply ped-demand 4 alternative elasticities Some key points to note for your answerability Webnote 123 2 Yed-income elasticity of demand

### Chapter 3 Quantitative Demand Analysis

Chapter 3 Quantitative Demand Analysis EX1: Suppose a 10 percent price decrease causes consumers to increase their purchases by 30%. What s the price elasticity? EX2: Suppose the 10 percent decrease in

### Economics: New Ways of Thinking Ancillary Sampler

Economics: New Ways of Thinking Ancillary Sampler Thank you for your interest in EMC Publishing s Economics: New Ways of Thinking! By now you have probably discovered why we were so excited to offer our

### DEMAND ESTIMATION (PART I)

BEC 30325: MANAGERIAL ECONOMICS Session 02 DEMAND ESTIMATION (PART I) Dr. Sumudu Perera Session Outline Definition of Demand Law of Demand Price Elasticity of Demand Elasticity and Total Revenue Income

### Introduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1

1 Name Introduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1 There is only ONE best, correct answer per question. Place your answer on the attached sheet.

### Lesson 3. Adam Smith and the Free Market 1/27/2013. Markets and Competition. Demand. Unit 2. Krugman, Module 5 pp

Unit 2 Adam Smith and the Free Market Lesson 3 Krugman, Module 5 pp. 7-5 0 Markets and Competition A market is a group of buyers and sellers of a particular product. A competitive market is one with many

### Economic Systems. Mixed Economies -market-based system in which the government plays a limited role.

Economic Systems Mixed Economies -market-based system in which the government plays a limited role. (product market) the ability and willingness to buya good or service. Schedule table that shows the

### Economics Unit 4, Lesson 1. Demand. Change in QD or Change in D 2012, TESCCC

Economics Unit 4, Lesson 1 Demand Change in QD or Change in D Objectives 1. Understand the difference between a change in demand and a change in quantity demanded. 2. Identify the determinants of a change

### (per day) Pizzas. Figure 1

ECONOMICS 10-008 Dr. John Stewart Sept. 25, 2001 Exam 1 Detailed solution for one Form of the Midterm: The general question are the same for all forms but some questions differ in details so correct answer

### PRICING. Quantity demanded is the number of the firm s product customers wish to purchase. What affects the quantity demanded?

PRICING So far we have supposed perfect competition: the firm cannot affect the price. Whatever the firm produces is sold at the world market price. Most commodity businesses are highly competitive: regardless

### ELASTICITY AND ITS APPLICATION. J. Mao

ELASTICITY AND ITS APPLICATION J. Mao Elasticity Until now, we ve been talking about the direction in which quantities change. A downward-sloping demand: price é è quantity demanded ê In real life it is

### EXAMPLE 1: Graphing the Demand Curve Use the data presented in the Demand Schedule for CDs to graph the demand curve in the chart below.

SOCIAL STUDIES 1211 Name: EXAMPLE 1: Graphing the Demand Curve Use the data presented in the Demand Schedule for CDs to graph the demand curve in the chart below. Demand Schedule For CDs Price per CD (in

### The Concept of Elasticity. The Elasticity of Demand. Laugher Curve. The Concept of Elasticity. Sign of Price Elasticity.

The oncept of Elasticity The Elasticity of Demand Elasticity is a measure of the responsiveness of one variable to another. The greater the elasticity, the greater the responsiveness. hapter Laugher urve

### Subtleties of the Supply and Demand Model: Price Floors, Price Ceilings, and Elasticity

CHAPTER 4 Subtleties of the Supply and Demand Model: Price Floors, Price Ceilings, and Elasticity CHAPTER OVERVIEW Price elasticity is one of the most useful concepts in economics. It measures the responsiveness

### Introduction Question Bank

Introduction Question Bank 1. Science of wealth is the definition given by 2. Economics is the study of mankind of the ordinary business of life given by 3. Science which tells about what it is & what

### Understanding Price Elasticity: It s No Stretch!

Understanding Price Elasticity: It s No Stretch! Lesson by Lesley Mace, senior economic and financial education specialist, Federal Reserve Bank of Atlanta, Jacksonville Branch Lesson description An important

### L2 Demand. I. Demand Curve. 1. Individual Demand. Example: Helen s demand for lattes.

L2 Demand Example: Helen s demand for lattes. I. Demand Curve The demand curve shows the relationship between price and quantity demanded. o Quantity demanded means the amount of a good that buyers are

### The total exam is worth 20 points. Each question is worth 2 points, and each sub question is worth an equal share of the two points.

Exam One PPA 723, Fall 2010 Professor John McPeak Name: The total exam is worth 20 points. Each question is worth 2 points, and each sub question is worth an equal share of the two points. 1) The demand

### Chapter 2 Market forces: Demand and Supply Demand

Chapter 2 Market forces: Demand and Supply Demand Market demand curve A curve indicating the total quantity of a good all consumers are willing and able to purchase at each possible price, holding the

### Supply and Demand: Theory (Part I)

Supply and Demand: Theory (Part I) Ch 3, Economics 9 th Ed, R.A. Arnold Market Ch. 2 discussed about production and trade. After production the producers (sellers) sell the goods to buyers in a market.

### Micro Chapter 7 study guide questions

Micro Chapter 7 study guide questions Multiple Choice Identify the choice that best completes the statement or answers the question. 1. A 15 percent increase in the price of beef reduces the quantity of

### Supply and Demand Basics

Supply and Demand Basics I. Demand A. Demand is a schedule that shows the various amounts of a product consumers are willing and able to buy at each specific price in a series of possible prices during

UNIT 2 CONSUMER'S BEHAVIOUR & THEORY OF DEMAND POINTS TO REMEMBER Consumer : is an economic agent who consumes final goods and services. Total utility : It is the sum of satisfaction from consumption of

### AP Microeconomics Review With Answers

AP Microeconomics Review With Answers 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry (which means show

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

HW 2 - Micro - Machiorlatti MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is measured by the price elasticity of supply? 1) A) The price

### The following content is provided under a Creative Commons license. Your support will help

MITOCW Lecture 6 The following content is provided under a Creative Commons license. Your support will help MIT OpenCourseWare continue to offer high quality educational resources for free. To make a donation

### ECO 610: Lecture 2. Theory of Demand; Elasticity; and Marketing and Consumer Behavior

ECO 610: Lecture 2 Theory of Demand; Elasticity; and Marketing and Consumer Behavior Theory of Demand; Elasticity; and Marketing and Consumer Behavior: Outline Demand Theory and Marketing Research Households

### Monopoly Monopoly occurs when there is a single seller of a good or service. Despite this simple definition that is usually given in textbooks, we

Monopoly Monopoly occurs when there is a single seller of a good or service. Despite this simple definition that is usually given in textbooks, we must criticize it a bit. Monopoly occurs when there is

### Exam 3 Practice Questions

Exam 3 Practice Questions 1. The price elasticity of demand is a measure of: a) how quickly a particular market reaches equilibrium. b) the change in supply associated with lower prices. c) the percent

### The Competitive Model in a More Realistic Setting

CHAPTER 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting Chapter Summary and Learning Objectives 13.1 Demand and Marginal Revenue for a Firm in a Monopolistically Competitive

### Unit I: Basic Economic Concepts

Unit I: Basic Economic Concepts What is Economics in General? Economics is the science of scarcity. Scarcity is the condition in which our wants are greater than our limited resources. Since we are unable

### Chapter Eight. Effects of a Price Change. Effects of a Price Change. Effects of a Price Change. Slutsky Equation. m p

Effects of a Price Change Chapter Eight Slutsky Equation What happens when a commodity s price decreases? Substitution effect: change in demand due to the change in the rate of exchange between the two

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. FIGURE 1-2

Questions of this SAMPLE exam were randomly chosen and may NOT be representative of the difficulty or focus of the actual examination. The professor did NOT review these questions. MULTIPLE CHOICE. Choose

### ECON MACROECONOMIC PRINCIPLES Instructor: Dr. Juergen Jung Towson University. J.Jung Chapter Introduction Towson University 1 / 69

ECON 202 - MACROECONOMIC PRINCIPLES Instructor: Dr. Juergen Jung Towson University J.Jung Chapter 2-4 - Introduction Towson University 1 / 69 Disclaimer These lecture notes are customized for the Macroeconomics

### Microeconomics Quiz #1 Study Guide

Microeconomics Quiz #1 Study Guide Note: Below is a list of study questions for the upcoming Quiz #1 (Tue., March 29th). The quiz covers Chapter 4 and 5 and supplementary materials presented in class and

### Econ 200 Lecture 4 April 12, 2016

Econ 200 Lecture 4 April 12, 2016 0. Learning Catalytics Session 62335486 1. Change in Demand 2. Supply and the Law of Supply 3. Changes in Supply 4. Equilibrium Putting Supply and Demand Together 5. Impact

### Elasticity and Its Applications PRINCIPLES OF ECONOMICS (ECON 210) BEN VAN KAMMEN, PHD

Elasticity and Its Applications PRINCIPLES OF ECONOMICS (ECON 210) BEN VAN KAMMEN, PHD Introduction This is the first of 4 chapters that comprise the middle of this course. These chapters are extensions

### Exam 1. Pizzas. (per day) Figure 1

ECONOMICS 10-008 Dr. John Stewart Sept. 30, 2003 Exam 1 Instructions: Mark the letter for your chosen answer for each question on the computer readable answer sheet using a No.2 pencil. Note a)=1, b)=2

### Introduction to Agricultural Economics Agricultural Economics 105 Spring 2016 First Hour Exam Version 1

1 Name Introduction to Agricultural Economics Agricultural Economics 105 Spring 2016 First Hour Exam Version 1 There is only ONE best, correct answer per question. Place your answer on the attached sheet.

### ECON 200. Introduction to Microeconomics Homework 2

ECON 200. Introduction to Microeconomics Homework 2 [Multiple Choice] Name: 1. A change in which of the following will NOT shift the demand curve for hamburgers? (b) a. the price of hot dogs b. the price

### Grade 9 EMS Demand and Supply

Grade 9 EMS Demand and Supply Name: Class Teach a parrot the terms "supply and demand" and you've got an economist. - Thomas Carlyle Demand and Supply booklet 2014 Shifts Vs. Movements In Demand and Supply

### ECON 203. Homework #1 Solutions

ECON 203 Homework #1 Solutions 2. Use supply and demand curves to illustrate how each of the following events would affect the price of butter and the quantity of butter bought and sold: a. An increase

### Consumer Choice and Demand. Chapter 9

Consumer Choice and Demand Chapter 9 Lecture Outline Applying The Standard Budget Constraint Model Two Additional Demand Shifters Time and Coinsurance Issues in Measuring Health Care Demand Impacts of

### Professor Christina Romer. LECTURE 3 SUPPLY AND DEMAND FRAMEWORK January 24, 2017

Economics 2 Spring 2017 Professor Christina Romer Professor David Romer LECTURE 3 SUPPLY AND DEMAND FRAMEWORK January 24, 2017 I. INTRODUCTION TO MARKETS A. Implications of scarcity and the gains from

### Elasticity (part two) Krzysztof Kołodziejczyk, PhD

Elasticity (part two) Krzysztof Kołodziejczyk, PhD https://flic.kr/p/j4fg3d Agenda 1. Price elasticity of demand 2. Extreme cases of elasticity 3. Elasticity and pricing 4. Elasticity in the long-term

### VANCOUVER ISLAND UNIVERSITY. ECON211: Principles of Microeconomics, Spring 2013 SAMPLE MIDTERM EXAM. Name (Last, First): ID #: Signature:

Important: Please remember it is a sample exam. Number of questions in each section and structure of questions in Part B would vary as discussed in class VANCOUVER ISLAND UNIVERSITY ECON211: Principles

### Mechanism through which buyers (demanders) and sellers (suppliers) communicate to trade goods and services.

By the end of this learning plan, you will be able to: Use marginal (Cost-Benefit) analysis in decision-making Apply supply and demand analysis to price determination Assess the role price plays in a market

### After studying this chapter you will be able to

3 Demand and Supply After studying this chapter you will be able to Describe a competitive market and think about a price as an opportunity cost Explain the influences on demand Explain the influences

### WEEK 4: Economics: Foundations and Models

WEEK 4: Economics: Foundations and Models Economics: study of the choices people and societies make to attain their unlimited wants, given their scarce resources Market: group of buyers and seels of good

### Chapter 8. Price Analytics

Chapter 8. Analytics Disclaimer: All images such as logos, photos, etc. used in this presentation are the property of their respective copyright owners and are used here for educational purposes only Some

### ASSIGNMENT 2 ND SEMESTER : MICROECONOMICS (MIC) ECONOMICS 2 (ECO201)

Page 1 of 9 ASSIGNMENT 2 ND SEMESTER : MICROECONOMICS (MIC) ECONOMICS 2 (ECO201) STUDY UNITS COVERED : STUDY UNIT 1: Chapters 1, 2 STUDY UNIT 2: Chapters 7, 8, 9, 10 DUE DATE : 3:00 p.m. 20 AUGUST 2013

### Interpreting Price Elasticity of Demand

INTRO Go to page: Go to chapter Bookmarks Printed Page 466 Interpreting Price 9 Behind the 48.2 The Price of Supply 48.3 An Menagerie Producer 49.1 Consumer and the 49.2 Producer and the 50.1 Consumer,

### 1.3. Levels and Rates of Change Levels: example, wages and income versus Rates: example, inflation and growth Example: Box 1.3

1 Chapter 1 1.1. Scarcity, Choice, Opportunity Cost Definition of Economics: Resources versus Wants Wants: more and better unlimited Versus Needs: essential limited Versus Demand: ability to pay + want

### AGEC 105 Fall 2010 Test #1 Capps (70 questions)

(70 questions) Please put the following pieces of information on your scantron: (a) Name (b) UIN # (c) Section #: 504 505 506 (d) Sign the ggie pledge on the back of your scantron. On my honor, as an ggie,

### ECON 251 Exam 2 Pink. Fall 2012

ECON 251 Exam 2 Pink Use the table below to answer the following four questions The table below shows Harry s total utility from consuming beer and wine. The price of beer is \$2 per bottle. The price of

### PowerPoint Lecture Notes for Chapter 4. Principles of Microeconomics 6 th edition, by N. Gregory Mankiw Premium PowerPoint Slides by Ron Cronovich

oweroint Lecture Notes for Chapter 4 The Market Forces of Supply and Demand rinciples of Microeconomics 6 th edition, by N. Gregory Mankiw remium oweroint Slides by Ron Cronovich N. Gregory Mankiw Microeconomics

### Elasticity of Demand

Elasticity of Demand Elasticity of Demand The law of demand states that an increase in price causes a decrease in quantity demanded (and vice-versa) Question: How much quantity demanded changes in response

### Exam 1. Number of Pretzels (per 8 hour day) Figure 1

ECONOMICS 10-008 Dr. John Stewart Feb. 11, 1999 Exam 1 Instructions: Mark the letter for your chosen answer for each question on the computer readable answer sheet. On the answer sheet make sure that you