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1) State and explain the difference between the law of demand and the law of supply

Economics

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1) State and explain the difference between the law of demand and the law of supply. What does the phrase "other things equal" mean? Why do we need that? (10)

2 a. In your own words, explain the difference between a movement along the demand curve and a shift in demand. Then, provide an example from your own personal life where you have experienced each one. (10)

b. In your own words, explain the difference between a movement along the supply curve and a shift in supply. Then, provide an example from your own personal life where you have experienced or witnessed each one. (10)

3 a. List all the factors that cause the demand curve to shift. Explain what each factor is and provide a real world example of each one (20) .

b. List all the factors cause the supply curve to shift. Explain each factor. Explain what each factor is and provide a real world example of each one. (15)

4 What is the difference between:

A Normal and inferior goods? Define each one and provide two real world examples of each one from your own personal life (5)

B Substitute and complementary goods? Define each one and provide two real world examples of each good from your own personal life (that is four examples) (10)

5. What would happen to the demand for goods and services when there was an increase in income? (5 pts)

6. Explain the difference between equilibrium, surplus and shortage. (15 pts). Be certain to address this in terms of supply and demand, Qd and Qs, and what role the price plays.