Chapter 4 questions
NO QUIZ ONLY ON EXAM!!
1.
What is an example of specialization?- pg. 58-59
2.
How does division of labor increase productivity- pg 59
3.
Why has the clothing manufacturing industry moved from the
U.S. to other countries?- pg65-66
4.
How does trade increase the value of an item? Pg. 67-68

Chapter 5
5-1 Introduction
Pg. 74-76
Explain

Demand
1.
On a sheet of paper tell whether YOU are in demand for the good and services listed (at market price). TELL WHY a.
iPod touch b.a new BMW c.
Xbox 360 d.An Atari e.
Lady Gaga autograph f.
Tie die t-shirt g.A Five Finger Death Punch CD h.An iPhone 5 cell phone i.
A used S10 truck – about $1000 j.
Arizona ice tea

Chapter 5
5-2 Introduction
Pg. 76-79
Explain

Demand schedule

Demand curve

Market demand

Law of demand

Substitute goods
1.
Look on page 76 how did Carrie Underwood’s performance on American Idol affect demand for her concert tickets?
2.
(review) What two characteristics of consumers must be in place to be in demand for a good or service?
3.
What is the amount of a good or service that a person is willing and able to buy at a specific price ?
4.
How do time frames factor into demand? Why is
“315,000 copies sold of Some Hearts” means nothing to economist and “315,000 copies sold in three weeks” is important to economist?
5.
How do marginal utility and a consumer’s income affect the law of demand?

Chapter 5-3
What Causes Demand to Change?
Pg.79-82
Explain

Change in demand
1.
List the six factors that cause a change in demand.
2.
Explain which factor causes the change in demand, and which way the curve moves

You get fired

You get a raise

A street vendor selling outside Progressive Field
 Large SUV’s/trucks(with gas prices)

You hear a cell phone is going on sale next week

You go to your favorite restaurant, what you order most has gone up in price, other meals have gone down in price

Price of gasoline goes up – demand for cars

You hear that your favorite restaurant is going out of business

Gatorade goes down in price and bottled water goes up

Chapter 5-4 and 5-5
How Do Supply and Demand Interact?
82-85
Explain

Supply

Supply curve

Market supply

Law of Supply

Revenue
1.
Why would we be more willing to sell products at $100.00 rather then $10.00?
2.
What causes changes in supply?

5-6
What is Demand Elasticity?
What Factors Influence It?
Pg. 87-91
Explain

Elasticity

Elasticity of demand

Elastic/inelastic

Unitary elastic demand

Total revenue test
1.
Name two products that YOU feel are elastic and two that are inelastic
2.
What is the formula for demand elasticity
3.
According the formula, how do you know if a product is elastic or not?
4.
How does the total revenue test show elasticity?
5.
List the factors that influence elasticity of demand.

..5-7
What is Supply Elasticity?
What Factors Influence It?
Pg. 91-95
Explain

Elasticity of supply

Supply Chain
1.
What are two examples of an elastic and inelastic supply product?
2.
What is the formula for supply elasticity? How can you tell if a supply is elastic or not?
3.
What factors affect the supply elasticity? (pg. 92-95)