Class 8
Answer the questions for Topic 3. Market transactions
1. Why does a market demand curve normally slope down?
2. Name some factors that could shift the demand curve out to the right.
3. Why does a firm’s supply curve normally slope up?
4. Name some factors that could shift the supply curve in to the left.
New task:
5. What is the significance of the point where supply and demand curves intersect?
6. Explain why the market price may not be the same as the equilibrium price.
7. Explain why, if the price of a good is above the equilibrium price, the forces of supply and demand will tend to push the price toward equilibrium.