Here is a draft everyone!  I want to add some more stuff to help you, but I though the early draft might still be helpful

Three chapters 3, 10, and 6!  That is more than enough and we will not add new stuff on Friday.

Chapter 3: Demand, Supply, and Market Equilibrium

We covered most of this chapter on the previous test, but it is so important that is worth another look.  Besides, we still need to look at price floors and price ceilings on a test.

Go back and review the factors that affect both supply and demand.  You do not need to memorize then, but you should be able to work through problems like on the previous test.  If you did poorly on supply and demand, this is your chance to show improvement and  bring up that grade.

Remember the steps to analyze changes?

•         Determine the event.

•         Determine the factor that is affected.

•         Shifts either the supply or demand curve.

•         Determine the new equilibrium.

•         Use the supply-and-demand diagram to see how the shift affects equilibrium price and quantity.

Problems 3 and 6 at the end of the chapter are OK problems.  Three is just demand and six is just supply.  It would be better if supply and demand factors were mixed and it would be better if the problem asked about what happened to the price and quantity, similar to the problems on the test.

In addition to the review of supply and demand, we still need to look at price floors and ceilings.  Know what they are and when they are used.  Be able to label the quantity supplied and the quantity demanded in both cases.  Be able to show the shortage or the surplus depending on the situation.  If you have a complete understanding of the price controls,  you could describe who would be hurt and who would be helped in examples like Rent Control, or a Price Ceiling on Hannah Montana tickets, or a Minimum Wage.

Chapter 10:  Wage Determination

We skipped many sections and you are n6t responsible for that material.  You are responsible for the notes.

Sections that we covered:

217-first ½ of 221

2^nd ½ of 225-first ½ of 227

Be able to use the supply and demand for labor.  A good example is problem 5 at the end of the chapter, but its use of resource “A” is not helpful.  Think of resource A as labor and good Z as Zippo lighters.

Chapter 6:  Businesses and their Costs

We skipped several sections in this chapter as well so that we could focus on the most important parts.  You are responsible for the notes.

Sections that we covered:

117-127

Marginal cost on 129

and the most important part was not in the text.  MC = MR, the last thing that wee explored is very important.

In this section, we were building from the labor material to form the cost curves and determine the profit maximizing location.

Production function:  What is its shape and why does it have that shape?

What is the definition of fixed costs and of variable costs?  What are real world examples of each?

What is the shape of the total cost curve and why does it have that shape?

What is the shape of the total revenue curve and why does it have that shape?

Are the labels on the X-axis and Y-axis the same for the production function graph and for the total cost graph?

What is the marginal cost?  What is the marginal revenue? 

Where is the profit maximizing point?  Does that point