Chapter 4 Study Guide
Section 1: Understanding Demand
Key Terms:
Use your own words to define these.
Demand
Law of Demand
Substitution Effect
Demand Schedule
Market Demand Schedule
Demand Curve
Answer “Key Terms and Main Ideas” question 1, and “Applying Economic Concepts” question 5.
Section 2: Shifts of the Demand Curve
Key Terms:
Use your own words to define these.
Ceteris Paribus
Inferior Good
Normal good
Complements
Substitutes
Answer “Key Terms and Main Ideas” questions 1-3, and “Applying Economic Concepts” question 6.
Section 3: Elasticity of Demand
Key Terms:
Use your own words to define these.
Inelastic
Unitary Elastic
Elastic
Total Revenue
Answer “Key Terms and Main Ideas” questions 1,3,4, and “Applying Economic Concepts” question?