ELP ~ Supply & Demand Review Sheet

**Define the terms and answer the review questions for up to 5 points on the Test**

**Complete the assignment on YOUR PAPER. I will NOT accept work completed on this sheet**

Terms

1. Law of Demand

2. Law of Supply

3. Demand

4. Quantity Demanded (Qd)

5. Supply

6. Quantity Supplied (Qs)

7. Complements

8. Substitutes

9. Shortage

10. Surplus

11. Inferior good

12. Normal good

13. Neutral good

14. Inventory

15. Determinants of Demand (factors that cause a demand curve to shift)

16. Determinants of Supply (factors that cause a supply curve to shift)

17. Total Revenue (TR)

18. Profit

19. Elasticity of Demand

a. Elastic Demand

b. Inelastic Demand

c. Unit Elastic Demand

20. Determinants of Elasticity (factors that determine the elasticity of an item)

Review Questions

  1. What will happen to price if a surplus exists?
  2. What is the intersection of demand and supply curves called?
  3. Explain the relationship between price (P) and quantity demanded (Qd).
  4. What happens to the demand for tennis balls if the price of tennis rackets increases? Why?
  5. What is the relationship between TR and Elasticity?
  6. Explain the relationship between price (P) and quantity supplied (Qs).
  7. Which types of goods are likely to have an inelastic demand?
  8. What happens to a demand curve if overall demand increases?
  9. What happens to a supply curve if overall supply decreases?
  10. What is the effect on supply if the cost of inputs increases?
  11. In what direction do demand curves slope?
  12. Give an example of a normal good.
  13. How will a supply curve look if no more goods can be produced?
  14. Why might a consumer overpay for a good?
  15. How does an increase in demand affect the equilibrium price of an item?

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