Demand and Supply Test Review
Know the following:
Law of Demand
Law of Supply
Demand/Supply schedules vs. curves
Demand vs. quantity demanded
Supply vs. quantity supplied
Shifts in demand – causes (list); curves
Shifts in supply – causes (list); curves
What do the curves mean? Can you interpret them?
Price vs. costs
Demand elasticity – definition; causes and effects; shapes of curves
Supply elasticity – definition; causes and effects (just the basics)
Diminishing marginal returns
Marginal revenues/costs