1. What is a market, and how does it relate to supply and demand?
2. What are the characteristics of a perfectly competitive market? Give an example of a perfectly competitive market and explain why it is a perfectly competitive market.
3. Explain the law of demand. Give an example of how the law works using a product of your choice.
4. Explain how market demand is computed and give an example using a product of your choice.
5. Explain how changes in the price of related goods can shift the demand curve on a product of your choice. Include substitutes and complements in your answer.
6. Explain the law of supply. Give an example of how the law works using a product of your choice.
7. Explain how market supply is computed and give an example using a product of your choice.
8. Explain how changes in input prices can shift the supply curve on a product of your choice.
9. Explain what a surplus is and why a surplus happens in the market. How should sellers react to a surplus? Why?
10. Explain what a shortage is and why a shortage happens in the market. How should sellers react to a shortage? Why?
