Mr. Maurer AP Economics Unit 2 – Demand and Supply Assignment for Thursday, September 24th, 2015 Read Chapter 3, Pages 53 – 59 (Stop at “Supply”) (Pages 39 – 45 in the old book) Answer the following questions: 1. What is a market? Provide 4 examples of markets. 2. What is demand? What is a demand schedule? What is a demand curve? 3. Explain the “law of demand.” 4. How do the law of diminishing marginal utility, the income effect, and the substitution effect all explain the relationship between price and quantity demanded? (Explain each separately.) 5. How is the market demand for a product related to an individual’s demand for that product? 6. What factors can cause a change in demand? (List each.) 7. What is the difference between “normal” goods and “inferior” goods? 8. Explain the difference between demand and quantity demanded. What is the only factor that can cause a change in quantity demanded? If you don’t finish today in class, finish for homework.