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After reading this chapter, you should be able to:
- Discuss
“the law of demand” by word, table, and graph. Pages 34-35
- List
the variables that shift the demand curve and explain why they do
so; and explain the income and substitution effects. Pages 35-37
- Explain
the difference between “demand” and “quantity demanded,”
“increase (or decrease) in demand” and “increase (or decrease)
in quantity demanded,” “shift of the demand curve” and
“movement along the demand curve.” Pages 35-36
- Discuss
“the law of supply” by word, table, and graph. Page 38
- List
the variables that shift the supply curve and explain why they do
so. Page 41
- Explain
the difference between “supply” and “quantity supplied,”
“increase (or decrease) in supply” and “increase (or decrease)
in quantity supplied,” “shift of the supply curve” and
“movement along the supply curve.” Page 40
- Explain
how we can use the concepts of market supply and market demand to
determine equilibrium price and equilibrium quantity. Pages 43-44
- Define
and explain the concepts of surplus, and shortage in the context of
market supply and market demand. Page 45
- Specify
how demand and supply shifts cause market equilibriums to change and
how simultaneous changes to supply and demand cause market
equilibriums to change. Pages 45-47
- Discuss
how vouchers use competition to improve the quality of schooling.
Pages 48-51
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