#1.2 : Review of Market Analysis

Question 1

It is the basis for making decisions in a market place.

Answer 1

Market Analysis

Question 2

Demand is a combination of:

Answer 2

willingness to buy + capacity to buy

Question 3

Relationship of price and demand

Answer 3

inversely-related

Question 4

Law of Demand

Answer 4

price increase = demand decrease

Question 5

Term for “holding all other factors constant”

Answer 5

Ceteris Paribus

Question 6

Demand curve formula

Answer 6

P1-P2 / Q2-Q1

Question 7

Direction of demand curve

Answer 7

downward slope

Question 8

It is where interaction between seller and customer happens.

Answer 8

marketplace

Question 9

Quantity demand is dictated by a _________

Answer 9

change in price

Question 10

2 types of income goods

Answer 10

normal and inferior

Question 11

2 kinds of normal goods

Answer 11

luxury-normal and basic-normal

Question 12

Changes in ___________ makes the shifts in demand.

Answer 12

taste and preferences

Question 13

The price of other goods indirectly affects the demand for other goods related to them.

Answer 13

Price of Related Goods

Question 14

2 types of related goods

Answer 14

substitutes and compliments

Question 15

Consumers speculations determine changes in demand.

Answer 15

Changes in Speculations

Question 16

Determines the number of consumers in a certain area.

Answer 16

Population

Question 17

Refers to the willingness of sellers to produce and sell a good at various possible prices.

Answer 17

Supply

Question 18

Relationship of price and supply

Answer 18

positively-related

Question 19

Law of supply

Answer 19

price increase = supply increase

Question 20

Direction of supply curve

Answer 20

upward slope

Question 21

shift to left = ______

Answer 21

decrease

Question 22

shift to right = _______

Answer 22

increase

Question 23

If the price of one or more input of a product decreases, the supply for that product increases and vice versa.

Answer 23

Prices of inputs or cost of production

Question 24

The use of ______ makes production efficient and faster making the supply increase.

Answer 24

Technology

Question 25

_______ add to the cost of production making the supply curve shift to the left while ______ lessen the cost of production making supply shift to the right.

Answer 25

1. Taxes and 2. subsidies

Question 26

As the number of sellers increases, the supply of products also increases.

Answer 26

Number of sellers or firms in the industry

Question 27

It determines whether the demand or supply curve is steep or flat.

Answer 27

Price Elasticity of Demand and Supply

Question 28

It occurs when the quantity supplied exceeds the quantity demanded, when the price of a good is above the equilibrium

Answer 28

Surplus

Question 29

It occurs when the quantity demanded exceeds the quantity supplied, when the price is below the equilibrium

Answer 29

Shortage

Question 30

supply increase + demand constant = price _____

Answer 30

decrease

Question 31

supply decrease + demand constant = price _____

Answer 31

increase

Question 32

supply constant + demand increase = price _____

Answer 32

increase

Question 33

supply constant + demand decrease = price _____

Answer 33

decrease

Question 34

supply increase + demand increase = price _____

Answer 34

increase

Question 35

supply decrease + demand decrease = price _____

Answer 35

decrease

Question 36

supply decrease + demand increase = price _____

Answer 36

increase

Question 37

supply increase + demand decrease = price _____

Answer 37

decrease