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Date:________________ Block:__________
Study Guide
Demand & Supply Unit Test
Unit Vocabulary Define the following terms:
1. quantity demanded:
14. supply curve:
2. demand:
15. market supply:
3. demand schedule:
16. law of supply:
4. demand curve:
17. revenue:
5. market demand:
18. change in supply:
6. law of demand:
19. change in quantity supplied
7. substitute good:
20. supply shifter:
8. change in quantity demanded:
21. subsidy:
9. change in demand:
22. excise tax:
10. demand shifters:
23. elasticity:
11. complementary good:
24. elasticity of demand:
25. elasticity of supply:
12. quantity supplied:
26. inelastic
13. supply schedule:
27. elastic:
Demand Shifters:
Identify, describe, graph and provide a real-life example for the Demand Shifter Factors (AKA: non-price determinants of
demand). Indicate whether the relationship between the factor and the demand curve is direct, or indirect.
28. Number of Buyers
29. Tastes
30. Income
a. Normal good
b. Inferior good
31. Expectations of Buyers
32. Price of Related Goods
a. Substitutes
b. Complements
Supply Shifters:
Identify, describe, graph and provide a real-life example for the Supply Shifter Factors (AKA: non-price determinants of
supply). Indicate whether the relationship between the factor and the supply curve is direct, or indirect.
33. Cost of inputs
34. Number of producers
35. Natural disasters or international events
36. Technology
37. Producer expectations
38. Government policy
a. Excise tax
b. Subsidy
Factors That Influence Elasticity:
Identify and describe the factors that influence the elasticity of demand and supply. Be able to provide a real life
example and make sure you know HOW the elasticity is influenced. For example:
39. Available substitutes: A high availability of reasonable substitutes will result in more elastic demand for a
product. If Gatorade becomes more expensive, consumers can substitute juice or water to meet their hydration
needs, thus creating a high elasticity of demand. As the price for Gatorade goes up, consumers will demand less
of it. When there are no or few reasonable substitutes for a product, demand is inelastic.
40. Price Relative to Income
41. Necessities versus Luxuries
42. Time Needed to Change
43. Availability of Inputs
44. Mobility of Inputs
45. Storage Capacity
46. Time Needed to Change