1. Explain the law of demand.

A. Why does a demand curve slope downward?

B. How is a market demand curve derived from an individual demand curve?

2. Explain the law of supply.

A. Why does the supply curve slope upward?

B. How is the market supply curve derived from the supply curves of individuals producers?

3. Assume the demand for lumber suddenly rises because of a rapid growth of demand for new housing. Assume no change in supply.

A. Why does the equilibrium price of lumber rise?

B. What would happen if the price did not rise under the demand and supply circumstances described?

Reference - McConnell, C.R., Brue, S.L., Flynn, S.M., & Grant, R.R., (2019).Microeconomics 3rd Ed

Chapter 4 - 5