MODULE 4

Question 1

the current price for which a good or service can be bought or sold in the marketplace

Answer 1

market price

Question 2

the agreed price of the commodity and amount to be sold and bought is called

Answer 2

euillibrium or market clearing price

Question 3

latin phrase for all other things held constant

Answer 3

ceteris paribus

Question 4

the word ______ are added to take note of the fact that price alone does not determine the uantity of a good or services that a consumer buy

Answer 4

ceteris paribus

Question 5

the process used to set the price of good and service reuired as payment

Answer 5

pricing

Question 6

occur when a business decides how much a customer pay

Answer 6

pricing

Question 7

decision-making process that establish the value for a product or service

Answer 7

pricing

Question 8

if a good is in shortage, price will

Answer 8

rise

Question 9

if a goods are in surplus, price will tend to

Answer 9

fall

Question 10

what curve is law of demand

Answer 10

downward

Question 11

what is the slope of law of supply

Answer 11

upward

Question 12

4 basic laws of supply and demand

Answer 12

if D ^ & S - = ^euilibrium price and ^uanity

if D v & S - = v euilibrium and v uantity

if S^ and D - = v euilibirium and ^ uantity

if S v and D - = ^equilibrium and v uantity

Question 13

a _____________ shows the uantity demanded at various price levels

Answer 13

demand curve

Question 14

a strategy-based pricing in which the price of a product is changed according to its demand

Answer 14

demand oriented pricing

Question 15

what happen in demand-oriented pricing

Answer 15

Demand is strong = ^ price

Demand is weak = v price

Question 16

the impact of changes in demand and supply brought by various factor can be analyzed through

Answer 16

price mechanism

Question 17

a change in one of the variables, other than the price of the good itself that affects willing ness of consumers to buy

Answer 17

shift in demand curve

Question 18

determinants of demand

Answer 18

price
income
number of buyers
taste
expectation

Question 19

the rightward shift of demand disrupts market and creates temporary

Answer 19

shortage

Question 20

those goods whose demand increases with rise in income

Answer 20

normal goods

Question 21

those goods whose demand decreases with rise in income

Answer 21

inferior goods

Question 22

determinants of supply

Answer 22

sellers input price
prices of related goods
number of sellers
expectation technology

Question 23

restriction set in place and enforced by governments

Answer 23

price control

Question 24

the price is fixed, no increases are allowed

Answer 24

price freeze

Question 25

what happen to trading price when there is price freeze

Answer 25

shares move 50%upward and 40%downward

Question 26

difference of price freeze and SRP

Answer 26

freeze = mandatory, to control and protect customers
srp = recommendation, guidline to ensure price consistency

Question 27

a recommendation used as a guideline to ensure price consistency across retailers

Answer 27

SRP

Question 28

control in price to protect customers

Answer 28

price freeze

Question 29

the max price that good may be sold

Answer 29

price ceiling

Question 30

why government imposes price ceilings

Answer 30

to keep it affordable

Question 31

in this situation, producers are unwilling to supply as many units

Answer 31

price ceiling = shortage

Question 32

what happen when there is price ceiling

Answer 32

shortage

Question 33

imposed limit on how low a price can be charged

Answer 33

price floor

Question 34

what can be observe when there is price floor

Answer 34

surplus

Question 35

why does price floor is implemented

Answer 35

to protect producers interest

Question 36

factors impact market price

Answer 36

-natural disasters
-world events
-amount of wages
-decrease or increase in employment
-pricing of luxury items versus necessities

Question 37

a decrease in employment or wages may cause consumers to spend

Answer 37

little money