Study Guide for Supply and Demand Quiz!

Supply and Demand

Study Guide

Study Assistants – You have these items to help you study.
Chapter 3 in your economics book - case study and info...
Calling all Babysitters article and questions
Supply and Demand homework - what is Demand?
Supply and Demand homework - what is Supply?
Terms to Understand

Supply    Elastic Demand        Inelastic Demand
Law of Demand      Law of Supply      Profit Motive
Demand


Concepts to Understand and other Things to Know

Directions: These should be answered as if they were short answer questions on the Big Test. Use your own paper to answer these in detail – so you feel confident you know it!

-What three conditions must be present in order for demand to exist?
-Economists say demand is like a rubber band – explain. What determines if it stretches or not?
-What are production costs? Are there different types? What affect do production costs have on supply? Give examples.
-Explain how the level of supply for a good or service could be changed. What are the ways in which this may happen?
-Explain how the level of demand for a good or service could be changed. What are the ways in which this may happen?
-What kind of an affect do shortages and/or surpluses have upon the prices of goods or services?
-What is important to a Producer? What most concerns a Producer?
-Identify the major factor that could influence a change in demand for a good. How and what would it affect?
-With your knowledge of supply and demand – how can you explain the rise and fall of stock prices?
-Do you understand the main idea in the article Calling All Babysitters? Explain then…
-When there is a want or need for a good/service and people are willing to pay but not able, how does a producer (business) create the ability to pay – thus increasing demand?
What are some factors that could change the level of demand for a good or service?

What are some factors that could change the level of supply for a good or service?

You own many different automobile dealerships. You decide to bring the price down on the new hybrid vehicles on your lots. You want to sell these and get them out of your stores. After the sale prices come out, you still don’t sell many. Demand for these hybrid vehicles is ____________________________.

Why would a gold mine filled with gold be closed down?

What do all business owners worry the most about? (what they must take into account – hint)

Stock Market and Investing Quiz is Friday, October 9th!

STudy Guide for the Quiz is below:

Introduction to Investing and the Stock Markets
Quiz Study Helper


These items will help you prepare for the quiz:
•Uncle Mort’s Money article
•Building a Fortune – Joe Becherer article
•Strategies for Stock Selection article (How to Pick a Stock)
•Chapter 8 in your Econ book (incl. the case study – the foundation for every unit in class
•Stocks, Bonds and Such homework
•Compound Interest homework (double your money)
•How to read a stock page/stock quote practice questions
•True and False Quiz Activity Q & A (remember the signs you held up?)
•Handy Dandy Stock Guide (How to read a stock page/stock quote)

Major Stock Concepts to know and know well:
 What is speculating?
 Why do people invest?
 Who is your new best friend? How does he work for you?
 What does it mean to own stock?
 How do you know what stock to pick?
 How do you read a stock table?
 What does it mean to sell short?
 What is a stock split?
 Why do corporations issue stock?
 Why don’t you keep your life savings in a mattress in your home?
 When is a good time to begin investing in yourself?
 What are the three largest stock exchanges in the United States?
What are commodities?
What is the DOW? What is it's purpose?

READ BELOW:

Make sure you can answer the questions above, thoroughly! If you can’t ask Mr. M!

Do you know how to answer questions using a stock page? If you don’t, see Mr. M asap!!! If you need more practice I can help you.

In the articles (and case study) above, think about the big ideas that I wanted you to get from these readings. If you are not sure, ask!