Unit+2+–+Supply+and+Demand

=**Supply and Demand**=

Reading:

 * McConnell & Brue: Chapter 3, Chapter 18, and Chapter 19
 * Morton & Goodman: Unit 2 (Pages 49–124)

Key Concepts:

 * Market equilibrium
 * Determinants of Supply and Demand
 * Price and quantity controls
 * Elasticity
 * Price, income, and cross-price elasticities of demand
 * Price elasticity of supply
 * Consumer surplus, producer surplus, and market efficiency
 * Tax incidence and deadweight loss

Graphs & Charts:
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 * Supply and demand graphs
 * Shifts of curves vs. movement along a curve
 * Show effects of price floors and price ceilings
 * Elastic and inelastic supply and demand curves
 * Show consumer/producer tax burden with elastic and inelastic supply and demand curves

Miscellaneous:

 * [[file:Supply and Demand 2010.pdf]]
 * [[file:Elasticity.pdf]]

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Multiple Choice Answers (from Rainbow book)