Ch. 3 (I) Questions:

1. Explain the difference between demand and quantity demanded in your own words

2. List three reasons the market supply curve for green beans would shift to the right

3. Define a price floor in your own words. What occurs as a result?

4. What is meant by the terms "Direct Effect" and "Ambiguous Effect"? When would you use these terms?

Ch. 3 (II) Questions:

1. Suppose the following demand and supply functions: QD=100-10P & QS=25+5P. Find the equilibrium price (P*) and equilibrium quantity (Q*).

2. Suppose the following demand and supply functions: QD=80-5P & QS=14+6P. Find the equilibrium price (P*) and quantity (Q*). How does your answer change if the price is $4? $8?

Ch. 4 Questions:

1. Explain the difference between tax incidence and economic incidence (3 pts).