Market Demand

Question 1

is composed of consumers and suppliers of a specific product.

Answer 1

market

Question 2

determine the demand

Answer 2

buyers/consumers

Question 3

determine the supply of goods and services.”

Answer 3

suppliers/sellers

Question 4

Types of Market

Answer 4

Factor Markets
Goods Market
Labor Market
Financial Market

Question 5

refer to the purchasing and selling of factors of production. In free market or
market economy, households are the owners and therefore could be the providers of the
factors of production (like land, labor, capital). ”

Answer 5

“Factor markets

Question 6

where we buy consumer goods. markets for the output of production.

Answer 6

Goods market

Question 7

“the venue for potential employees looking for a job and ready to provide
services. In the same way, it is a venue for employers who are hiring workers for particular
jobs.”
o Financ

Answer 7

Labor market

Question 8

where securities of corporations are traded.

Answer 8

Financial market

Question 9

BASIC PRINCIPLES OF DEMAND

Answer 9

DEMAND
MARKET DEMAND
THE LAW OF DEMAND

Question 10

is the willingness and ability of consumers to buy a certain quantity of good or service at a
certain price.”

Answer 10

Demand

Question 11

is the aggregate demand of all consumers, who buy the goods in the market

Answer 11

Market demand

Question 12

“As price increases, the quantity demand for that product decreases, other things held constant
(ceteris paribus)”

Answer 12

Law of demand

Question 13

“Conditions and assumptions of Law of Demand”

Answer 13

1. “There is no variation or change in the consumers’ income. If there is an increase or decrease on this
   factor, the law might not be applicable. ”
2. “The consumers’ taste and preference do not change”
3. “The price of substitute goods or complement goods do not increase nor decrease”
   “The law of demand can be expressed through demand schedule and demand curve. ”

Question 14

“all other factors are held constant except the one that is under study (example: price only)”
- “the variables that might influence the demand for the product do not vary or change and the only thing
that affects the quantity demand is only the price”

Answer 14

Ceteris Paribus

Question 15

“It indicates the different amount or quantity that the consumer is willing to buy at different given
prices.”

Answer 15

DEMAND SCHEDULE

Question 16

“Classifications of Demand Schedules”:

Answer 16

“Individual Demand Schedule”
Market Demand Schedule

Question 17

• “It illustrates the demand schedule graphically, with the price of a good on Y axis and the quantity
  demanded on X axis”

Answer 17

Demand Curve

Question 18

“It illustrates how the determinants affect the quantity demanded for a product, most importantly,
how the price determines the demand for the commodity.”

Answer 18

Demand Function

Question 19

Demand Function Formula

Answer 19

Qd= f (P)

Question 20

when the price of a good increases or decreases, the consumer’s real income or purchasing power also
changes

Answer 20

Income effect

Question 21

it is felt when a change in the price of a good changes demand due to alternative consumption of
substitute goods; consumers substitute expensive goods with cheaper goods

Answer 21

Substitution effect

Question 22

refers to the movements along a “fixed” demand curve as a
response to a change in the good’s own price, ceteris paribus.

Answer 22

Change in the quantity demanded:

Question 23

“When determinants affect change in demand, and the other things remain constant even the price, then
the demand will change, and the demand curve will move or shift to the right or to the left.

Answer 23

Change in demand

Question 24

“If ceteris paribus is disregarded or dropped, the variables other than price which also influence
demand can now affect demand (income, taste, expectations, prices of related goods and
population)”

Answer 24

NON-PRICE DETERMINANTS OF DEMAND

Question 25

“If ceteris paribus is disregarded or dropped, the variables other than price which also influence
demand can now affect demand (income, taste, expectations, prices of related goods and
population)”

Answer 25

NON-PRICE DETERMINANTS OF DEMAND

Question 26

the income of the consumer influences the capacity to purchase

Answer 26

Income

Question 27

the income of the consumer influences the capacity to purchase

Answer 27

Income

Question 28

Income

Answer 28

Income ↑ QD↑ “Shift to the right”
Income ↓ QD↓ Shift to the left

Question 29

“These are goods that are consumed as a replacement for the other good. For example, beef and
chicken, broccoli and cauli flower, etc.)”

Answer 29

Substitute goods

Question 30

“These goods are usually consumed together. For example, cars and gasoline, DVDs and DVD
players, sugar and tea, etc.”

Answer 30

Complementary goods

Question 31

prospect of what is going to happen to the price can influence the demand of a
commodity

Answer 31

Expectation

Question 32

preference that may influence the demand for a commodity

Answer 32

Taste

Question 33

Factors affecting taste

Answer 33

a. Cultural values
b. Peer pressure
c. Power of advertising

Question 34

size and characteristic of the population

Answer 34

Numbers of consumers(market)