Editors notes: 1) McConnell Economics Books, including the 18th edition, are one of many sources of material included in this chapter.
                        2) Current Events Internet Library has an interesting economics section.

 I. The marketplace
      A. A market is defined as an institution or mechanism which promotes trade by bringing together buyers (demanders) and 
           sellers (suppliers).
      B. Replaced barter which is the direct exchange of goods.
      C. A modern market brings money and prices into the circular flow of goods.

II. Demand is willingness to buy.
     A. Demand is a schedule of the amounts of goods and services consumers are willing and able to buy at a set of prices.
     B. Total demand is the Horizontal Summation of individual demand.
     C. Law of demand:: price and quantity are inversely related.
         1. As price goes up, quantity demanded goes down.
         2. As price goes down, quantity demanded goes up.
         3. Why more is bought as price drops.
             a. Income Effect: as the price of a good drops, consumers feel richer and buy more.
             b. Substitution Effect: as the price of a good drops, it becomes cheaper relative to 
                 other goods and consumers buy more

 C. Math Review is a short review of basic dynamic math skills for microeconomics from R. Larry Reynolds of Boise State.

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Note: Increase is to the right because the x-axis increases to the right. 

III. Supply is willingness to sell
      A. Supply is a schedule of the amounts of goods or services producers are willing and able to sell at a set of prices.
      B. Law of supply: price and quantity supplied are directly related because price and expected profit are directly related
          1. As price goes up, quantity supplied goes up
          2. As price goes down, quantity supplied goes down
      C. Supply schedule

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