DEMANDguide (1) - 12. Describe the three dynamic laws of...

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Study guide ECON 201 Test #2 1. Define demand. 2. State and explain the Law of Demand. 3. Name the shift factors of demand. 4. With the use of a diagram explain the impact of a change in income on demand. 5. Describe the influence of “related goods” on consumer demand. 6. Define market demand and explain the increase in market demand when there is a decrease in the market price of a product. 7. Explain the difference between ‘demand’ and ‘quantity demanded’. 8. Explain the difference between ‘movement along the demand curve’ and ‘shift of the demand curve’. 9. Define supply and explain the shift factors of supply. 10. Define market equilibrium. 11. With the use of a diagram explain a ‘shortage’ and a ‘surplus’.
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Unformatted text preview: 12. Describe the three dynamic laws of demand and supply. 13. What are the three invisible forces that influence market price? 14. Describe the interaction of the invisible forces in deciding market price. 15. Compare the features of Capitalism and Som. 16. What are the functions of price in a Capitalistic economy? National income flow chart ( The circular flow of resources, goods, and income.) 1. Clearly understand: a. The house-holds and the firms b. Factor market and product market c. Leakages and injections d. Role of the government and the financial sector in the macro economy. e. Private sector and the public sector...
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