Econ 11, Chapter 4

Questions

What is "demand"?

What is "quantity demanded"?

In demand, which variable is independent?

What is the "inverse demand"?

Explain notional and effective demand

State and explain the "law of demand".

What are the two types of quantities?

What kinds of things change demand?

What is "supply"?

What is "quantity supplied"?

State and explain the "law of supply".

What kinds of things change supply?

What are "market clearing" and "equilibrium"?

What happens when a price is away from equilibrium?

What do "consumer surplus" and "producer surplus" mean, and how are they measured graphically.