1. Supply and Demand EQs
1. What are the laws of Supply and Demand?
The law of demands is quantity demanded and price move in opposite directions. The law of
supply is the principle that suppliers will offer more at a higher price and less at a lower price.
2. Create an example of a supply and demand schedule.
A list of what people are willing to buy for things. Supply schedule records the law of supply. So
increasing gas rates would be recorded on a supply schedule.
3. Create/label a supply / demand graph along the interaction of supply and demand. Show the
effects shortage/surplus of resources and its effects on a supply/demand graph. Show how the
curves will sift to the left or to the right.
Region 1 Region 2
30
22.5
15
7.5
0
2007 2008 2009 2010
4. Give an example of diminishing marginal utility.
Marginal utility is additional satisfaction so if you eat at the same restaurant for dinner every
night eventually you are going to get sick of that restaurant and want to change it up.
Tara Pawlyk Monday, March 11, 2013 1:08:41 PM ET 04:0c:ce:d3:10:88

2. 5. What is elasticicty/inelasticity of supply and how does this effect demand. What are the effects
of elasticity/inelasticty on demand.
Demand elasticity is the extent in which the change in price affects the quantity demanded. For
inelastic demand if the price is raised the demand stays roughly the same.
Business and Ownership EQs
List and describe the different types of business ownership. Describe the advantages and
disadvantages of each type of ownership.
Sole Proprietorships- owned by single person, advantages are single person profits, disadvantage
is no shared business expenses or responsibilities
Partnerships- two or more people share ownership, advantage is they all share responsibilities
and company expenses, disadvantages is they also have to share the profits so less individual
profit
Corporations-organized business that by law has the responsibilities and rights of an individual,
advantages are being able to raise capital by buying and selling stock, disadvantages are it’s
complex and expensive to start
Tara Pawlyk Monday, March 11, 2013 1:08:41 PM ET 04:0c:ce:d3:10:88