2. Chapter 4 Terms Elasticity of demand Substitution effect Law of demand Complement Substitute Total revenue Normal good Inferior good Demand curve Ceteris paribus
3. Chapter 5 Terms Increasing marginal returns Diminishing marginal returns Negative returns Subsidy Marginal cost Marginal revenue Quanity supplied Operating costs Total cost Law of supply Variable costs Elasticity of supply regulation
4. Applications Indicate the changes in market price and quantities due to: Shifts in the demand curve - ( population, income, substitutes, complements, tastes and preferences, advertising) Shifts in the supply curve – ( number of suppliers, subsidies, regulations, future expectations)
