ECONOMICS Chapter 6 - Introduction

1. The standards we are covering are SSEMI2 & SSEMI3. 2. The factors of production are: a. land b. labor c. capital d. ENTREPRENEURS 3. A change in quantity demanded is a change in the quantity of the product purchased in response to a change in price. 4. A change in demand is when something other than price causes demand to change. 5. The elasticity of demand is the way that consumers react to a price change. 6. A change in quantity supplied is the amount a supplier is willing & able to supply at a certain price. 7. A change in supply is caused by a change in a determinant other than price. 8. The elasticity of supply is the way firms react to a change in price. 9. The United States is a market economy. 10. The interaction between demand and supply determines: a. price of most goods b. quantity of most goods

ECONOMICS
Chapter 6 DEMAND v. SUPPLY Key
Demand Law of consumers buy more of a good when its price decreases and less when its price increases Supply tendency of suppliers to offer more of a good at a higher price

Graph of Law of

Graph of a change in quantity

Demanded

Supplied

Signified by Primary Cause Graph of a change in

Movement along the demand curve Change in price

Movement along the supply curve Change in price

Signified by Primary Cause

an entire shift of the curve When something other than price causes demand to change

an entire shift of the curve When something other than price causes supply to change