Problem:
Markets may be local, national, or global. The extent and size of the market is, in part, determined by how easy it is for suppliers to offer their product to buyers and how easy it is for buyers to find suppliers. How has the Internet expanded the extent and size of markets for goods and services? What specific examples can you cite? How do you see technology further expanding market reach in the future?
Explain the law of demand. Why does a demand curve slope downward? What are the determinants of demand? What happens to the demand curve when each of these determinants changes? Distinguish between a change in demand and a change in the quantity demanded, noting the cause(s) of each.
Explain the law of supply. Why does the supply curve slope upward? What are the determinants of supply? What happens to the supply curve when each of these determinants changes? Distinguish between a change in supply and a change in the quantity supplied, noting the cause(s) of each.
Define price and income elasticity of demand.