REVIEW QUESTIONS
Demand:
1. Define demand and explain the law of demand.
2. What factors can cause a shift in the demand curve?
3. Differentiate between a change in quantity demanded and a change in demand.
4. How does price elasticity of demand influence consumer behavior?
5. Give examples of goods with elastic and inelastic demand, and explain why they exhibit such
characteristics.
6. Discuss the concept of income elasticity of demand and its significance in understanding
consumer behavior.
7. How do substitutes and complements affect the demand for a product?
8. Explain how expectations about the future can influence current demand.
Supply:
1. Define supply and explain the law of supply.
2. What factors can cause a shift in the supply curve?
3. Distinguish between a change in quantity supplied and a change in supply.
4. How does price elasticity of supply impact producer behavior?
5. Provide examples of goods with elastic and inelastic supply, and explain why they exhibit such
characteristics.
6. Discuss the concept of technological advancements and its impact on supply.
7. How does the cost of production affect supply?
8. Explain the role of government policies and regulations in influencing supply.
Equilibrium:
1. Define market equilibrium and explain how it is achieved.
2. Describe the role of price in achieving equilibrium in the market.
3. What happens to price and quantity when there's a shortage in the market?
4. What happens to price and quantity when there's a surplus in the market?
5. Explain how changes in demand and supply affect market equilibrium.
Market Forces:
1. How do changes in consumer preferences impact demand and supply?
2. Discuss the role of expectations and speculation in influencing market dynamics.
3. Explain the concept of market equilibrium and why it's considered the most efficient allocation
of resources.
4. How do changes in technology influence supply in various industries?
5. Discuss the impact of government interventions such as taxes and subsidies on market
equilibrium.