Unit 2 Assignments - How the Markets Work
Chapters 4-7, pgs. 76-180.
1. In Section 3 (Classwork) – Unit 2 Key Terms For each term below, give a 1-2 bullet point definition of the term and include a
picture that represents the term. More points awarded for colored pictures. These DO NOT have to be large.






Demand
Demand and Supply
Schedule
Market Price
Normal v. Inferior Goods
Elastic v. Inelastic
Price Ceiling and Price
Floor










Subsidy
Regulation
Excise Tax
Equilibrium
Minimum Wage
Trust
Price Fixing
Cartel v. Collusion
Income Effect
Marginal Cost and
Marginal Revenue
 Black Market
 Commodity
2. In Section 3 (Classwork) – Unit 2 Major Concepts. Do a 6-8 sentence paragraph for each of the ideas below telling
information and facts about the term. Make sure you explain the concept well enough so that anyone would understand
the topic.






Law of Supply
Law of Demand
Four Production Costs
Supply and Demand Curve (Include a
Graph)
Surplus v. Shortage
Competition (include Monopoly,
Oligopoly, Market Power)
 Marginal Returns
 Compare Compliments and Substitutes
3. In Section 4 – Essay – In 2-3 pages Explain how supply and demand relate to your post-high school life.
 Think About – College acceptance, Major choice, Job/Career Path, Family Life, Paying Bills, Providing
happiness, providing for your retirement, and any other ideas you can come up with.
Unit 2 Assignments - How the Markets Work
Chapters 4-7, pgs. 76-180.
1. In Section 3 (Classwork) – Unit 2 Key Terms For each term below, give a 1-2 bullet point definition of the term and include a
picture that represents the term. More points awarded for colored pictures. These DO NOT have to be large.






Demand
Demand and Supply
Schedule
Market Price
Normal v. Inferior Goods
Elastic v. Inelastic
Price Ceiling and Price
Floor










Subsidy
Regulation
Excise Tax
Equilibrium
Minimum Wage
Trust
Price Fixing
Cartel v. Collusion
Income Effect
Marginal Cost and
Marginal Revenue
 Black Market
 Commodity
2. In Section 3 (Classwork) – Unit 2 Major Concepts. Do a 6-8 sentence paragraph for each of the ideas below telling
information and facts about the term. Make sure you explain the concept well enough so that anyone would understand
the topic.





Law of Supply
Law of Demand
Four Production Costs
Supply and Demand Curve
(Include a Graph)
Surplus v. Shortage



Competition (include Monopoly,
Oligopoly, Market Power)
Marginal Returns
Compare Compliments and
Substitutes
3. In Section 4 – Essay – In 2-3 pages Explain how supply and demand relate to your post-high school life.
 Think About – College acceptance, Major choice, Job/Career Path, Family Life, Paying Bills, Providing
happiness, providing for your retirement, and any other ideas you can come up with.