Chapter 5
5-1 Introduction
Pg. 74-76
Explain
 Demand
1. On a sheet of paper tell whether YOU are in
demand for the good and services listed (at
market price). TELL WHY
a. iPod touch
b. a new BMW
c. Xbox 360
d. An Atari
e. A Lady Gaga DVD
f. A new house
g. A Five Finger Death Punch CD
h. A Droid cell phone
i. A used S10 truck – about $1000
j. Carrie Under
k. wood concert tickets
Chapter 5
5-2 Introduction
Pg. 76-79
Explain
 Demand schedule
 Demand curve
 Market demand
 Law of demand
 Substitute goods
1. Look on page 76 how did Carrie Underwood’s
performance on American Idol affect demand for her
concert tickets?
2. (review) What two characteristics of consumers must
be in place to be in demand for a good or service?
3. What is the amount of a good or service that a person
is willing and able to buy at a specific price?
4. How do time frames factor into demand? Why is
“315,000 copies sold of Some Hearts” means nothing
to economist and “315,000 copies sold in three weeks”
is important to economist?
5. How does marginal utility and a consumer’s income
affect the law of demand?
Chapter 5-3
What Causes Demand to Change?
Pg.79-82
Explain
 Change in demand
1. List six factors that cause a change in demand?
2. Explain which factor causes the change in
demand, and which way the curve moves






You get fired
You get a raise
A street vendor selling outside Progressive Field
Large SUV’s/trucks
You hear a cell phone is going on sale next week
You go to your favorite restaurant what you order
most has gone up in price, other meals have gone
down in price
 Price of gasoline goes up – demand for cars
 You hear that your favorite restaurant is going
out of business
 Gatorade goes down in price and bottled water
goes up
Chapter 5-4 and 5-5
How Do Supply and Demand Interact?
82-85
Explain
 Supply
 Supply curve
 Market supply
 Law of Supply
 Revenue
1. Why would we be more willing to sell products
at $100.00 rather then $10.00?
2. What causes changes in supply?
5-6
What is Demand Elasticity?
What Factors Influence It?
Pg. 87-91
Explain
 Elasticity
 Elasticity of demand
 Elastic/inelastic
 Unitary elastic demand
 Total revenue test
1. Name two products that YOU feel are elastic and two that
are inelastic
2. What is the formula for demand elasticity
3. According the formula, how do you know if a product is
elastic or not?
4. How does the total revenue test show elasticity?
5. List the factors that influence elasticity of demand.
..5-7
What is Supply Elasticity?
What Factors Influence It?
Pg. 91-95
Explain
 Elasticity of supply
 Supply Chain
1. What are two examples of an elastic and inelastic supply
product?
2. What is the formula for supply elasticity? How can you tell
if a supply is elastic or not?
3. What factors affect the supply elasticity? (pg. 92-95)
Chapter 5 Review
1. According to the law of demand, quantity demanded
decreases when?
2. During the summer picnic season a rise in the price of burger
may lead to an increase demand for what?
3. Quantity demanded moves along the demand curve in
response to the?
4. Which way would the demand curve for clothes move if a
blizzard kept customers at home?
5. Supply depends on the willingness and ability of what?
6. According to the law of supply, what happens as the price
increases?
7. A decrease in the price of leather would do what to the supply
of footballs?
8. The degree to which the quantity demanded responds to the
change in price is called?
9. If the price went up on (airline services, lawn service, medical
doctors, midsize cars) which would become more available in
the largest quantities?- hint: think elasticity of supply
10. Give an example of the diminishing marginal utility
11. What does the revenue test below tell?
Price
Quantity demanded
$1.00 10
2.00
8
3.00
7
12.
Tell if the following is a change in supply or demand and
why
a. Hurricane on oranges
b. Increase price on hamburger on buns
c. New video game on game consoles
d. Price of gasoline on SUV’s
e. Pay raises on ATV’s
f. Hurricane on Hotels in the Hurricane area
g. Labor strike at Ford on Cars
h. Haunted houses during October on haunted houses
i. Government tax on tanning on tanning salons
j. Subsidy on corn on corn
13. Give three products that have an elastic and inelastic
demand
14. Give three products that have an elastic and inelastic
supply