Name: ________________________________ Date: ______________ Hour: _____________
Economics Test 2 Study Guide
Supply and Demand
Vocabulary: Know the following words. You can complete the definitions on a separate piece of
paper or make flash cards (there are even online sources for you to use too!)
Demand
Substitute
Law of Demand
Complementary Good
Supply
Market Price
Law of Supply
Equilibrium
Questions: Answer the questions completely for full credit. May not need a full sentences
1. What is demand?
2. What is supply?
3. How are demand and supply different? How are they the same?
4. How does demand affect price?
5. How does supply affect price?
6. Write a substitute for the following good or service.
Taxi:
Nike shoes:
Degree from Wayne State:
7. Write a complementary good for each good.
Table:
Computer:
Vegetables:
Milk:
8. How can complementary goods or substitutes affect prices?
9. What is the market price?
10. After Halloween, what happens to the demand of candy? How does that affect price?
11. Can you show changes of demand and supply on a demand and supply curve? How?
Your turn: Use the chart to graph a demand and supply curve. Make sure to label all of the
following parts:
X-axis, Y-axis, Supply, Demand, Price, Quantity, Title
Demand of t-shirts
100
200
300
400
Price
$10
$20
$30
$40
Supply of t-shirts
300
200
400
500