EC201 / EC202 Chapter 4 - Supply & Demand 1. A market is a place where 11. On the chart provided, demonstrate an increase in the quantity demanded. and meet. 2. True / False: A market must be a physical place. 3.50 P 3. Competitive markets have 3.00 2.50 buyers and sellers. 2.00 4. According to the law of demand: ceteris paribus, 1.50 the quantity demanded of a good will increase 1.00 when the price of that good T / + / and the quantity demanded of a good will decrease when 100 125 the price of that good T / + / > 5. Market demand is the average / mode / sum 12. On the chart provided, demonstrate an of individual demands. increase and a decrease in demand 6. What are the five factors that shift demand? 3.50 (1) 1 3.00- 2.50- (2) R 2.00 (3) T 1.50- (4) E 1.00 (5) N 25 50 75 100 125 7. The demand for a normal good & /> as income T. 13. On the chart provided, demonstrate a decrease in the quantity demanded. 8. The demand for an inferior good * / 1 /> as income T. 3.50 9. The demand for a complementary good 3.00 4 / 1 / 4 as the price a good used with it T. 2.50 2.00 10. The demand for a substitute good 1.50 & / 1 /4 as the price a close substitute T. 1.00 Initial Point Q 25 50 75 100 125 14. According to the law of supply: ceteris paribus, the quantity supplied of a good will increase when the price of that good T/L