Chapter 3 Quiz (8pts)1. _________ is the willingness & ability to buy a good or service.

2. ____________ states: as price decreases, the quantity demanded increases and as price increases the quantity demanded decreases.

3. If the demand curve shifts to the right, what does it mean?

4. If the price of Coke went up the demand for Pepsi would___________ because it is a(n) ___________

5. Toilet paper is an example of a(n) ___________ good.

6. Movement along the same demand curve is a change in:________

7. Numerical table of data that illustrates the Law of Demand is a:____

8. :What are the 4 things that can cause the demand curve to “shift”?

9. BONUS2:The law that states that a person’s utility eventually decreases with each additional unit of the same good is:_________________

Chapter 3 Quiz (8pts)1. DEMAND_ is the willingness & ability to buy a good or service.

2. __LAW OF DEMAND_ states: as price decreases, the quantity demanded increases and as price increases the quantity demanded decreases.

3. If the demand curve shifts to the right, what does it mean? DEMAND INCREASES

4. If the price of Coke went up the demand for Pepsi would_INCREASE__ because it is a(n) _R.G. -Substitute__

5. Toilet paper is an example of a(n) _inferior__ good.

6. Movement along the same demand curve is a change in: Quantity Demanded (Qs)__

7. Numerical table of data that illustrates the Law of Demand is a:DEMAND SCHEDULE

8. :What are the 4 things that can cause the demand curve to “shift”? PREFERENCES – RELATED GOODS - # of BUYERS - INCOME

9. BONUS2:The law that states that a person’s utility eventually decreases with each additional unit of the same good is:_________________

At the end of the day you should be able to:• Define SUPPLY• Illustrate a change in quantity

supplied.• Illustrate a change in supply.• Identify the supply shifters

Supply• SUPPLY – the willingness and ability of SELLERS to produce and sell a good or service.

• LAW OF SUPPLY – a law stating that as the price of a good increases, the quantity supplied of the good increases, and that as the price of a good decreases, the quantity supplied of the good decreases.

P then Qs P then Qs • QUANTITY SUPPLIED – the number of units of

a good produced and offered at a specific price.

P

Qo

$5

4

3

2

1

10 20 30 40 50 60 70 80

Pri

ce o

f C

orn

Quantity of Corn

$54321

8070604530

P QS

CORN

MARKETS

Change

in Quantity

Supplied (Qs)

GRAPHING SUPPLY

SUPPLY SUPPLY CURVE SHIFTS RIGHT

SUPPLY SUPPLY CURVE SHIFTS

LEFT

What causes the Supply Curve to shift?

SP

Qo

$5

4

3

2

1

10 20 30 40 50 60 70 80

Pri

ce o

f C

orn

Quantity of Corn

$54321

60503520 5

P QS

CORN

MARKET

8070604530

S1Increase

in

Supply

GRAPHING SUPPLY

SP

Qo

$5

4

3

2

1

10 20 30 40 50 60 70 80

$54321

60503520 5

P QS

Pri

ce o

f C

orn

Quantity of Corn

S1

453020 0 --

Decrease

in

Supply

GRAPHING SUPPLYCORN

MARKET

Supply SHIFTERS!

• Resource Prices• Technology• Taxes• Subsidies• Quotas• Weather• Number of Sellers

How will the following headlines affect the Supply of Hybrid Cars?

1. New robotic machines has increased the amount of hybrid engines that can be produced.

2. The US Gov’t lowers quotas on Japanese cars (US MARKET).

3. A storm sinks a shipment of Japanese hybrid cars coming to America (US MARKET).

4. The per-unit cost of hybrid cars falls because of new production equipment.

5. The US Gov’t offers to give US car manufacturers $1,000 for every Hybrid car they produce.

6. In 2009, THREE new car manufacturers start producing hybrid cars.

7. The market price for Ford Escape Hybrids plummets.

Essay TopicWhat might change the supply of corn?

Chapter 4.1-4.2 Reading Quiz1. The Law of Supply is a direct relationship

stating that when P _____ then Qs ______ AND when P ______ then Qs____.

2. (T/F) When resource prices fall, sellers are willing and able to produce and sell less of a good.

3. A movement along the same supply curve would represent a change in ____________.

4. LIST 4 of the 7 SUPPLY SHIFTERS (Bonus +1 for all 7)

5. The supply curve of 1957 Chevy cars would be an example of a _________ supply curve.

Chapter 4.1-4.2 Reading Quiz1. The Law of Supply is a _______ relationship

stating that when P goes up then Qs goes up AND when P goes down then Qs goes down.

2. (T/F) When resource prices increase, sellers are willing and able to produce and sell less of a good.

3. A change in price would mean there has also been a change in ____________.

4. LIST 5 of the 7 SUPPLY SHIFTERS (Bonus +1 for all 7)

5. The numerical table used to graph a supply curve is called a ________________.