Modules 5 & 6
half sheet of paper
you may use notes if you took them
(no points this time, lucky you)
1. How do you determine the market demand of a good?
2. Which of the following would
increase demand for
The Law of
As price rises, quantity
as price falls, quantity
Always start in BLACK ink
Show shifts/changes in BLUE
Label Price (y-axis)
Partner closest to the window:
How is the market demand of a
good or service determined?
Partner closest to the wall:
What is the difference between a
change in demand and a change in
Graph the following curve based on the info below
and answer the questions below (use black ink):
Price ($) 11
NOTE: label Price on the vertical axis and Quantity
on the horizontal axis.
Change in Supply vs. Change in Quantity Supplied Review
Complete the following sentences:
A change in quantity supplied is caused by
A change in supply is caused by
On the graph below, demonstrate a change in quantity supplied.
Law of Increasing Opp. Cost
We know that
the Law of Increasing Opportunity Cost
governs the shape of a production possibility
as more of one good is produced, it becomes
increasingly harder to produce this good
(higher opportunity cost).
Opportunity Cost and Comparative Advantage Packet
1. The key difference between comparative advantage and absolute advantage is that comparative
advantage is relative while absolute advantage is absolute value. Comparative advantage takes into
Rum and Crystal
Explain how you would use the concept of
opportunity cost in everyday life.
Differentiate between increasing and constant
opportunity cost PPCs
Explain why the Law of Increasing