Kazakhstan Institute of Management, Economics, and Planning
Summer, 2001
Meeting Three
Assigned Topics:
Demand
Supply
Diminishing Marginal Returns
Law of Increasing Costs
Ceteris Paribus
Quiz 2
In your own words, write a definition for any three of the above.
Draw a demand curve. Label both axes.
What are some of the "determinants" of supply? Give three examples of things that might shift supply in a market for potatoes.
Questions for discussion:
Can there be an exception to the Law of Demand? Try to think of an example where it does not work.
If market demand is greater, sellers can make the same amount of money selling at a lower price. Isn’t it best for society if they sell at a lower price?
What is the connection of Demand and Supply to Diminishing Returns?
Price is not a determinant of Demand. But if prices go up, isn’t demand less? How do we explain this?