Chapter 4. What characteristics or requirements must be met for a market to be considered as each of the following?

1. What characteristics or requirements must be met for a market to be considered as each of the following? Expand your answers with your examples as well.

1. perfectly competitive

2. a monopoly

3. an oligopoly

4. monopolistic competition

1. What are the determinants of individual demand? Please, define each of them in detail with examples.

1. Explain the meaning of the following terms: normal good, inferior good, substitutes, complements.

1. There are two ways to reduce the quantity of smoking demanded. You can use figures to explain. What are the consequences?

1. What are the determinants of individual supply? Please, define each of them in detail with examples as well.

1. What does the term “equilibrium” mean when applied to a market? When do have shortage and surplus in the market. Also, show your answers on the graphs.

1. What is the difference between a “change in demand” and a “change in quantity demanded”? Graph your answer.

1. Suppose an event (heat wave and a hurricane) occurred during the same summer which changed a market equilibrium. How would an economist go about analyzing the change in equilibrium? Analyze a change in both supply and demand using three steps (what are they?). Graph your answer as well.

1. Be ready to define any economic terms on Key Concepts.

1. What happens to Price and Quantity when Supply or/and Demand shift? Make sure you can draw a graph of any entries in this table using a supply-and-demand diagram. (I might ask you to draw graph of any entry)

	No Change in Supply	An Increase in Supply	A Decrease in Supply
No Change in Demand
An Increase in Demand
A Decrease in Demand

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