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.