1. Define demand. What does the law of demand state?

1. Define demand. What does the law of demand state? Express it in words, in symbols (clip art or images), and as a graph.

2. Define supply. What does the law of supply state? Express it in words, in symbols (clip art or images), and as a graph.

3. Discuss the five factors that cause demand curves to shift and give a specific example of each one.

4. Describe the five factors that shift the supply curve and what causes a movement along the supply curve.

5. What does it mean when a supply curve shifts to the left? Shifts to the right? Compare a shift of the curve to a movement along the curve.

6. Define elasticity of demand and describe how it is calculated; give examples of elastic and inelastic goods.

7. Describe equilibrium three ways: in words, with symbols, and as a labeled graph.

8. Describe how price acts as a signal in the marketplace to buyers and sellers.

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