Managerial Econ Part 2

Question 1

• defined as a group of firms and individuals that are in touch with each other in order to buy or sell some good .

Answer 1

market

Question 2

-pertains to the different quantities of the goods and services that the buyers or consumers are willing and able to buy or consume for a given price level for a particular period of time.

Answer 2

demand

Question 3

Composed primarily of the households who are considered as the basic consuming unit of the society.

Answer 3

demand side of the market

Question 4

-states that if the price increases, quantity demanded (Qd)
decreases, while if the price decreases, quantity demanded increases

Answer 4

Law of Demand

Question 5

when the price of either complementary or substitute goods will affect the demand o

Answer 5

Price of related goods

Question 6

It is assumed that other factors in the economy that
may have an influence to the change of quantity are held
constant or unchanged

Answer 6

ceteris paribus

Question 7

when the good is normal(basic
& essential goods) then any future decrease of price
will not affect current demand, while if the good is
inferior (luxuries), any future changes in price affect
the current and future demand

Answer 7

price expectation

Question 8

more income means more demand for
goods

Answer 8

income

Question 9

• more people means more demand for
  goods

Answer 9

population

Question 10

when the government requires the consumption of a particular good then the demand will increase

Answer 10

special influences

Question 11

Composed of the firms and business entities which are considered as the producing unit of the economy.

Answer 11

supply side of the economy

Question 12

refers to the different kinds of goods
and services that the sellers and producers are
willing and able to sell at a given price level
for a particular period of time

Answer 12

supply

Question 13

states that if the price
increases, quantity supplied (Qs)
increases, while if the price decreases,
quantity supplied decreases

Answer 13

law of supply

Question 14

any increase and decrease of the
price of raw materials and wage/direct labor will affect
supply

Answer 14

cost of production

Question 15

makes the price of goods more expensive
thereby decreases supply

Answer 15

government taxes

Question 16

increases the productive capacity of
producers

Answer 16

government subsidies

Question 17

More sellers increases/
lesser number of seller decreases supply of goods

Answer 17

number of sellers

Question 18

• the change of price of a good in
  a supply chain affects the price of the final products.

Answer 18

cost of related goods

Question 19

It states that if demand is greater than supply, then the price will usually increase, while if demand is lesser than supply, then the price decreases.

Answer 19

law of demand and supply

Question 20

attained when the demand and supply will intersect or become equal

Answer 20

market equilibrium

Question 21

measures the extent of effect or responsiveness of one
variable when another variable changes

Answer 21

elasticity

Question 22

Those goods which are essential but the moment you
inject a brand/want on it, it will become semi-essential
and semi-luxury.

Answer 22

unitary elastic goods

Question 23

Measures the responsiveness of the quantity being bought or sold to the change in the goods-own-price

Answer 23

price elasticity

Question 24

measures the responsiveness of the quantity demanded
due to the change in the goods-own-price.

Answer 24

price elasticity of demand

Question 25

Measures the responsiveness of the quantity supplied
due to the change in goods-own price

Answer 25

price elasticity of supply

Question 26

Measures the responsiveness of the quantity of goods
bought due to the change in income

Answer 26

income elasticity

Question 27

Measures the responsiveness of the quantity of one
good when the price of another good changes.

Answer 27

cross price elasticity