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There are 9 questions for the quiz.

 Supply and demand is a very important concept that one must know for the quiz, as 3 questions deal with the topic.

o A "change in demand" occurs because the consumer's state of mind about purchasing the product has been altered in response to a change in one or more of the determinants of demand (i.e., change in buyer tastes, number of buyers, income, price of related goods, expectations, etc.). The entire curve shifts right (increases) or left (decreases). In contrast, a "change in quantity demanded" is caused by an increase or decrease in the price of product under consideration. The demand has not changed - the entire curve remains fixed in place. A “change of supply” looks just like a Change of demand except it refers to a different curve. The same can be said for the “change in quantity demanded”.

o Please keep in mind that only the demand OR only the supply curve can be affected, resulting in only one curve moving and other not being affected.

 Equilibrium Price and equilibrium quantity

 Elasticity (demand and supply) and calculations, as well as it applies to results of unemployment. Know how to do the calculations and know when something is elastic (responsive to price change); unit elastic (one for one or equal change); or inelastic (non-responsive to price changes). Additionally, know the formula and how to calculate it.

A most important topic in Week 1 is the price elasticity of demand and supply. Price elasticity is one of the most important topics in all of economics, for it has lots of practical uses.

Price elasticity is a relative (i.e., percentage) change in Q divided by a relative (i.e., percentage) change in P. If the former exceeds the latter, then demand (or supply) is "elastic." If the reverse is true, demand (or supply) is "inelastic." If the two percentages are equal, then demand (or supply) is "unitarily elastic."

(NOTE: In calculating price elasticities, always use the midpoint formula.)...