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Demand/SupplyTest Study Guide Name__________________________________ Chapter 4 Demand Law of Demand Change inDemandvs.Change in QuantityDemanded SubstitutionEffect Income Effect DemandCurve (Whichdirectiondoesitslope?) What causeschanges (shifts) inDemand? 1. 2. 3. 4. 5. Normal Goods InferiorGoods Complements Substitutes Elasticityof Demand ElasticDemand InelasticDemand What factors influence the elasticityof demandforaproduct? 1. 2. 3. Total Revenue Total Revenue Test
Chapter 5 Supply Law of Supply QuantitySupplied SupplyCurve Elasticityof Supply What isthe onlyfactoraffectingelasticityof supply? Marginal Product of Labor IncreasingMarginal Returns DecreasingMarginal Returns Negative Marginal Returns FixedCost Variable Cost Total Cost Marginal Cost Marginal Revenue ProfitMaximizingoccurswhere marginal cost=marginal revenue Factors causinga change (shift) inthe supplycurve 1. 2. 3. Subsidies 4. Taxes 5. Regulations 6. 7.

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Chapter 4 5 study guide

  • 1. Demand/SupplyTest Study Guide Name__________________________________ Chapter 4 Demand Law of Demand Change inDemandvs.Change in QuantityDemanded SubstitutionEffect Income Effect DemandCurve (Whichdirectiondoesitslope?) What causeschanges (shifts) inDemand? 1. 2. 3. 4. 5. Normal Goods InferiorGoods Complements Substitutes Elasticityof Demand ElasticDemand InelasticDemand What factors influence the elasticityof demandforaproduct? 1. 2. 3. Total Revenue Total Revenue Test
  • 2. Chapter 5 Supply Law of Supply QuantitySupplied SupplyCurve Elasticityof Supply What isthe onlyfactoraffectingelasticityof supply? Marginal Product of Labor IncreasingMarginal Returns DecreasingMarginal Returns Negative Marginal Returns FixedCost Variable Cost Total Cost Marginal Cost Marginal Revenue ProfitMaximizingoccurswhere marginal cost=marginal revenue Factors causinga change (shift) inthe supplycurve 1. 2. 3. Subsidies 4. Taxes 5. Regulations 6. 7.