When drawing a supply and demand diagram, what is always measured on the vertical (Y)
axis?
Space to move this question.
2. When drawing a supply and demand diagram, what is always measured on the horizontal (X)
axis?
3. The slope of the demand curve will always be:
4. The slope of the supply curve will always be:
5. Which way will the demand curve shift if there is an increase in demand for some reason
other than the price,
6. Which way will the supply curve shift if there is a decrease in supply for some reason other
than the price,
7. If the price is currently above the equilibrium price there will be a
a. Draw a diagram showing the quantity demanded, quantity supplied and the amount
of the surplus or shortage
8. If the price is currently below the equilibrium price there will be a
a. Draw a diagram showing the quantity demanded, quantity supplied and the amount
of the surplus or shortage
9. The point where the quantity supplied is equal to the quantity demanded is called
10. An event that affects the production of a good will cause the _______curve to shift.
11. Briefly explain (one sentence) what an inferior good is (in your own words) and provide an
obvious example.
12. Briefly explain (one sentence) what a normal good is (in your own words) and provide an
obvious example.
13. Briefly explain (one sentence) what substitute goods are (in your own words) and provide an
obvious example of two goods that are substitutes of each other.
14. Briefly explain (one sentence) what complementary goods are (in your own words) and
provide an obvious example of two goods that are complements of each other.
15. If there is an increase in demand, the quantity will ______ and the price will _____.
16. If there is a decrease in demand, the quantity will ______ and the price will _____.
17. If there is an increase in supply, the quantity will ______ and the price will _____.
18. If there is a decrease in supply, the quantity will ______ and the price will _____.
For the following questions be sure to label:
price axis
quantity axis
demand curve
supply curve