Economics

Question 1

A table that shows the relationship of prices and specific quantities demanded at each of these prices.

Answer 1

demand schedule

Question 1

Shows the relationship between the demand for a goods and the factors that determine or influence this demand.

Answer 1

demand function

Question 2

Graphical representation showing the relationship between the prices and quantities demand per time period

Answer 2

demand curve

Question 3

The inverse relationship between price and quantity demanded is given in an _____________________________.

Answer 3

algebraic expression

Question 4

The demand curve has a negative slope which indicates the ________________________ between price and quantity demanded.

Answer 4

inverse relationship

Question 5

The law of demand states that, ceteris paribus or all else being equal, people tend to buy more at lower prices and less at higher prices.

Answer 5

law of demand

Question 6

Law of Demand

Answer 6

Cruz, 2017

Question 7

A schedule that shows the quantity of goods or services that consumers are willing and able to buy given a list of possible prices during a specific period.

Answer 7

Demand

Question 8

This relates to the personal likes and dislikes of consumer for a certain good or service and this could be brought about by means of various factors including character’s age, sex, health condition, religion, culture, way of life, and changes in technology

Answer 8

Consumer Taste and Preferences

Question 9

There will be an increase in demand for a good when it is popular. However, if the good is no longer popular or liked, then the demand for that good will decrease.

Answer 9

Consumer Taste and Preferences

Question 10

A change in people’s income can change demand. An increase in people’s income will often lead to an increase in demand. However, if incomes go down, consumers will buy less, which will lead to a decrease in demand (Powell 2019).

Answer 10

A Change in Income

Question 11

A good whose demand rises as income increases

Answer 11

Normal Good

Question 12

A good whose demand falls as income rises

Answer 12

Inferior Good

Question 13

Population can also affect the demand for a good. If there is an increase in number of people, then there will likely be an increase in demand (Powell 2019).

Answer 13

Population Change (Number of buyers)

Question 14

The price of a substitute or a complement is also important in assessing how the demand for a good or a service may change.

Answer 14

Price of Related Goods

Question 15

Goods that are interchanged with other goods and generally offered at a cheaper price making these more attractive for buyers to purchase.

Answer 15

Substitute goods

Question 16

Goods that are used together. In other words, one good cannot exist without the other good. Example would be ink cartridges are used with printers (Cruz 2017).

Answer 16

Complementary goods

Question 17

If consumers expect for a price of good to rise (or fall) in the future, it may result for the current demand to increase (or decrease).

Answer 17

Expectations of Future Prices

Question 18

The quantity of goods or services that an enterprise is able and willing to produce for sale to consumers.

Answer 18

Supply

Question 19

The sellers will sell more at a higher price (Cruz 2017)

Answer 19

Law of Supply

Question 20

When there are more sellers in the market, the higher is the supply of a good or service.

Answer 20

Changes in the Number of Sellers

Question 21

The cost of production of a good affect the supply in the market. When the factors of production that is used to manufacture a product or good increases, the manufacturer opt to decrease the supply.

Answer 21

Changes in Resource Price

Question 22

The use of new technology affects the amount of supply a business will produce. The use of new technology tends to lower the cost of production which results to higher profit for the business. If the profit is high, the business will produce more supply.

Answer 22

Changes in Technology

Question 23

An increase in the price of other goods (a good that requires the same input and technology) can influence the production decision of a firm. The firm may opt to produce more supply for a good with high price and less supply for a good with a lower price.

Answer 23

Prices of Other Goods

Question 24

When the government imposes a tax on a business, this will result to an increase in the cost of production. An increase in the cost of production will lead to a decrease in supply because of a decrease in profit. However, when the government decides to provide a subsidy to a business, this will lead to increase in supply. This is because subsidy serves as an incentive for a business.

Answer 24

Taxes and Subsidies

Question 25

When the supplier anticipate a changes in price, government policies, and growth in the economy to happen in the future, the tendency is for them to supply less than what they would have and wait until such time that they could sell their product at a higher price.

Answer 25

Price Expectation

Question 26

Removing quotas and tariffs on imported products also affects the supply. Lower trade restrictions and lower quotas or tariffs increases imports resulting to an increase in supply of goods in the market.

Answer 26

Exportation and Importation

Question 27

Typhoons and floods can destroy our agricultural products which results to shortage in supply during that time.

Answer 27

Natural Calamities and Disasters

Question 28

Exists when quantity demanded equals quantity supplied.

Answer 28

Market equilibrium

Question 29

A price where both consumers and producers accept and agree on it. This can be solved algebraically by equating the demand and supply functions.

Answer 29

Equilibrium price

Question 30

Where the demand and supply curves intersects.

Answer 30

Equilibrium point

Question 31

A condition in the market in which demand is higher than supply

Answer 31

Shortage

Question 32

A condition in the market in which quantity supplied is higher than the quantity demand

Answer 32

Surplus

Question 33

Demand Schedule

Answer 33

Qd = a – bP

Question 34

Supply Schedule

Answer 34

QS = c + dP

Question 35

Determinants of Supply

Answer 35

· Changes in the Number of Sellers
· Changes in Resource Price
· Changes in Technology
· Prices of Other Goods
· Taxes and Subsidies
· Price Expectation
· Exportation and Importation
· Natural Calamities and Disasters

Question 36

Determinants of Demand

Answer 36

· Consumer Taste and Preferences
· A Change in Income
· Population Change (Number of buyers)
· Price of Related Goods
· Expectations of Future Prices