ECON: Period 5
Work on apartment project (HW).
SECTION 1 REVIEW:
2. KEY TERMS – Define: Demand, Microeconomics, Demand Schedule, Demand Curve, Law of Demand, Market Demand Curve, Marginal Utility, Diminishing Marginal Utility
3. DESCRIBE the relationship between the demand schedule and demand curve.
4. DESCRIBE how the slope of the demand curve can be explained by the principle of diminishing marginal utility.
SECTION 2 REVIEW:
2. KEY TERMS – Define: Change in Quantity Demanded, Income Effect, Substitution Effect, Change in Demand, Substitutes, Complements.
3. DESCRIBE the difference between a change in quantity demanded and a change in demand.4. EXPLAIN how a change in price affects the demand for a product’s substitute(s).
SECTION 3 REVIEW:
2. KEY TERMS - Define: Elasticity, Demand Elasticity, Elastic, Inelastic, Unit Elastic.
3. DESCRIBE the 3 determinants of demand elasticity.
4. EXPLAIN why the demand for insulin is inelastic.
5. EXPLAIN why an item that has many close substitutes tends to have an elastic demand?