Demand
Supply
Equilibrium
Other
McFacts
100
What is the law of demand?
As price increases, demand goes down. (inverse relationship)
100
Supply has what type of slope?
Positive
100
Where can I find equilibrium on a graph?
Where the supply and demand lines cross
100
What is a substitute?
A good that can be used for the same service as another; often times a replacement to a good whose price has increased
100
Who is Purdue’s rival school?
Indiana University (IU)
200
What kind of slope do all demand curves have?
Negative slopes
200
How is the law of supply different than that of demand?
The law of supply has a positive relationship with price and supply; as one goes up or down so does the other.
200
What is the equilibrium quantity? 
70
200
Does demand or supply shift if there is a successful advertising campaign? What direction?
Demand, to the right (increasing)
200
When did Mr. McMahon start learning guitar?
16
300
In a “surplus” is the demand above or below supply?
Below, there is too much of a good/service and not enough demand
300
How does new technology generally affect production?
Makes us more efficient and thus increases the amount supplied
300
When quantity demanded is greater than the quantity supplied: this is a
Shortage
300
If I charge more money for my hamburgers, should I expect my revenue to increase? (hint: is this an elastic or inelastic good?)
My revenue will fall; because my good is elastic
300
Mr. McMahon’s favorite hip hop artist won a Pulitzer Prize in 2018, who is this artist?
Kendrick Lamar
400
A company says that it will be putting all of its cars on sale in a month; what will that do to demand for cars today?
Demand will fall today
400
What does a supply schedule show?
Amount supplied at a given price
400
A shortage is a result of this happening to the market
Price ceiling (short people can’t touch ceilings)
400
What is a per-unit tax, and does it affect supply or demand?
A tax imposed on the production of a good or service; it decreases the supply due to it being more costly to produce.
400
What all has Mr. McMahon taught in his teaching career?
US History, Economics, World History, English Language Arts, Literature, Algebra 2, Calculus, Special Education
500
What happens to demand when the price of insulin goes up?
Extremely small change (if at all), due to it being an inelastic good
500
A wildfire has put a major lumber producer out of business. How might an economist show on consequence of this on a graph?
Supply curve shifting to the left.
500
What happens when there is a shift in supply or demand?
Equilibrium is restored
500
How would a government subsidy for rice farmers affect the market for rice?
It would increase the supply due to the decrease in production costs.
500
What is Mr. McMahon’s one classroom rule?
Respect the educational process