Lesson 16 pg. 49 -52

Question 1

Define demand in the context of chapter 4

Answer 1

demand - relationship between a good’s price and the amount that people are willing to buy

Question 2

In demand’s definition “the amount that people are willing to buy”, what does not include in that amount?

Answer 2

This does not include the amount that people would merely like to have, but only what they are willing and able to buy.

Question 3

Define supply in the context of chapter 4

Answer 3

supply - relationship between a good’s price and the amount that producers are willing to provide for consumers

Question 4

Give the two chief types of value that classical economists recognized early on that there were

Answer 4

Classical economists recognized early on that there were chief types of value:
>value in use
>value in exchange

Question 5

Define and describe “value in use”

Answer 5

value in use - value that is directly related to the benefits their owners receive through their use