1. What is the difference between absolute prices and relative prices? Which do economists focus on more, and why? Explain the importance of the type of price economists focus on.

2. Explain the difference between demand, quantity demanded, and elasticity of demand.

3. Briefly define, and explain the reasoning behind, the First Law of Demand, the Second Law of Demand, and the Law of Supply.

4. List and explain the determinants of the following. Also, explain what it means for each of the following to "increase" or "decrease".

• Demand
• Elasticity of Demand
• Supply
• Elasticity of Supply