Dec 4, 2018

Quiz on chpt 8 this week

Due next week

Chapter 4

4(1)  Understanding Demand  (79-
Define:
demand
law of demand
substitution effect
income effect
demand schedule
market demand schedule
demand curve

Look a figure 4.1  What does the law of demand say about lower prices?

Look at figure 4.2  What two effects does it show?

What two types of demand schedules are shown on figure 4.3?

Section 1 questions  Group_______________________

4(2)  Shifts in Demand Curve
Define:
ceteris paribus
normal good
inferior good
complements
substitutes

What is pictured on page 85?

Look at 4.6  What is shifting?

What inferior good is pictured on page 86?

What expectation pictured on page 87 changed demand?

What complementary goods are pictured on page 88?

Section 4(2) questions :  Group  _______________________

4(3)  Elasticity of Demand
Define:
elasticity of demand
inelastic
unitary elastic
total revenue

Read Global connections (91)  What caused a change in the Indian government in 1988?

Look at the picture on page (93) Which demand is inelastic and which is inelastic?  Why?

Look at the picture (94)  How are economic conditions reflected in the two car advertisements?

Look at the 4.8 revenue table?  At what individual price do you think a pizzeria could maximize its revenue?  Why? Remember complementary products to pizza.

Look at figure 4.9 (96) How does revenue signal elasticity?

Section 4(3) questions   Group  _____________________