1) Define supply and demand. List their determinants.

Q2) What is the equilibrium price and equilibrium quantity ? If the actual price in the market were above the equilibrium price, what would drive the market toward the equilibrium? If the actual price in this market is below the equilibrium price, what would drive the market toward the equilibrium?

Q3) What is likely to happen to the quantity supplied of a particular cut of meat when its price rises? Express your answer as a general hypothesis of the relationship between the price and the quantity supplied of any commodity.

Q4) Distinguish between the short-run rationing function and the long-run guiding function of price.