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Why does quantity demanded tend to fall as price rises?
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Suppose the average income of consumers rises. What happens to the demand curve?
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Suppose you are analyzing the market for beef and the price of chicken rises. What do you think will happen to the beef demand curve?
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Explain the difference between a change in demand versus a change in the quantity demanded.
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The market demand curve is the horizontal sum of what?
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Explain the Law of Supply.
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Name three shift factors influencing the supply curve.
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Suppose your company comes up with a new cost-saving, computerized process for making corn flakes. What do you think will happen to the supply curve?
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Suppose the price of labor or raw materials increases for corn flakes manufacturers. What happens to the supply curve?
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Illustrate a shortage, a surplus, and equilibrium using supply and demand curves.
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Illustrate a price floor for milk.
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Illustrate a price ceiling for wheat.
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Explain how the market mechanism answers these three questions: What goods are produced? For whom are goods produced? How are goods produced?
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Provide several examples of how the supply and demand framework can help you save or make money in your professional or personal life.
