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Supply and Demand Test Study Guide
Chapter 7 Section 1
Demand
Supply
Law of Demand
Law of Diminishing Marginal Utility
Chapter 7 Section 2
Demand Curve
Demand Schedule
Determinants of Demand
Change in Population
Change in Income
Change in Tastes and Preferences
Substitute Goods
Complimentary Goods
Price Elasticity of Demand
Elastic Demand
Inelastic Demand
Chapter 7 Section 3
Law of Supply
Supply Curve
Supply Schedule
Determinants of Supply
Price of Inputs
Number of Firms
Taxes
Technology
Chapter 7 Section 4
Equilibrium Price
Shortage (also know/understand when they
occur)
Surplus (also know/understand when they
occur)
Market Forces
Price Controls
Price Ceilings (Define and graph an
example)
Price Floors (Define and graph an
example)
Other Information from chapter 7
Be able to distinguish between the
difference in a change in demand and
quantity demanded (same goes for
supply and quantity supplied).
o You should be able to recognize
on a graph the difference between
a change in demand vs change in
quantity demanded (and supply vs
change in quantity supplied)
Be able to explain and identify changes
in supply and demand.
o Be able to explain the possible
cause of the change
o Be able to explain the result of the
change
Be prepared to graph supply and
demand curves as well as labeling the x
and y axis. You should also be able to
show the equilibrium price and quantity
and be able to show how a change in
supply and/or demand would affect the
equilibrium price and quantity.
Chapter 1 and 2
The factors of production
The 3 economic questions
Market (Capitalist) Economy
Command (Socialist) Economy
Mixed Economy
Scarcity
Opportunity Cost
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