Ch. 3 Review Sheet: Test Monday 10/20.

Define demand
Demand vs quantity demanded
Law of demand: P/QD relationship
Law of diminishing marginal utility
normal goods vs inferior goods
graph demand curve/label properly
factors affecting demand shifts (from group presentations)
Elasticity of demand- informal tests
Elasticity of demand- calculate using midpoint method


Define supply
Law of supply:P/QS relationship
graph supply curve/label properly
factors affecting supply shifts


Graph and interpret the result of price floors and price ceiling.  Be able to provide real life examples, the intended goals, and the unintended consequences (surplus/shortage).




For the FRQs
Be able to illustrate the market for a good and label it properly at equilibrium.  Then:


1.  Determine if the problems calls for a change in S or D.


2.  Determine in which direction that curve should move (remember left=less)


3.  Illustrate the change.  Label the new E, P, Q.


4.  Interpret the results of YOUR graph and identify the results.


Review your notes
Watch the MJMFOODIE videos on Youtube
Study the factors affecting S and D
Review all of the news related Twitter posts from 10/6 to present.