Supply and Demand

Question 1

Willingness of sellers to produce and sell a good at various possible prices.

Answer 1

Supply

Question 2

The price and quantity supplied have a direct relationship.

Answer 2

Law of Supply

Question 3

If the price of a good is high, the quantity supplied or the amount that producers are willing to sell will also be high.

Answer 3

Law of Supply

Question 4

a graphic representation of the relationship between price and quantity supplied

Answer 4

Supply Curve

Question 5

The price appears on the vertical axis, while the quantity supplied appears on the horizontal axis.

Answer 5

Supply Curve

Question 6

a table that shows the relationship between the price of a good and the quantity supplied

Answer 6

Supply schedule

Question 7

factors that influence supply: the higher the number of sellers in the market, the more supply of products will be available

Answer 7

change in the number of sellers

Question 8

Factors that Influence Supply: cost of production refers to the prices of all resources needed to manufacture a product. The higher the cost, the lower the quantity supplied

Answer 8

change in cost of production

Question 9

Factors that Influence Supply: the use of machinery and other equipment leads to a faster way of producing goods, thus, yielding a higher output

Answer 9

change in technology

Question 10

Factors that Influence Supply: different government policies affect changes in supply

Answer 10

Change in the government policies

Question 11

Willingness of the buyer or consumer to pay for a certain good

Answer 11

Demand

Question 12

The price and quantity demanded have an indirect relationship

Answer 12

Law of Demand

Question 13

If the price of a good is high, the quantity demanded will be low

Answer 13

Law of Demand

Question 14

a graphic representation of the relationship between price and quantity demanded

Answer 14

Demand Curve

Question 15

The price appears on the vertical axis, while the quantity demanded appears on the horizontal axis.

Answer 15

Demand curve

Question 16

a table that shows the relationship between the price of a good and the quantity demanded

Answer 16

Demand schedule

Question 17

Factors that Influence Demand: a consumer will buy more goods when there is an increase in income

Answer 17

Change in Income

Question 18

Factors that Influence Demand: population growth means an increase in the size of the market demand, and a decline in population means a decrease in demand

Answer 18

Change in the size of population

Question 19

Factors that Influence Demand: a good for which consumers’ tastes and preferences are greater, its demand would be large

Answer 19

Change in tastes and preferences

Question 20

Factors that Influence Demand: if a buyer assumes the price of a good will increase in the future, the demand for that good today increases

Answer 20

Change in the consumers’ speculations

Question 21

Refers to a price at which both parties producers and consumers are agreed to exchange.

Answer 21

Market equilibrium

Question 22

A condition of _______ is reached when the quantity of supply and demand are balanced or equal at a given price level.

Answer 22

equilibrium

Question 23

The equilibrium condition may be illustrated by combining the _______.

Answer 23

demand and supply

Question 24

Formula for Quantity Supplied (Qs)

Answer 24

Qs = c + dP; where P is price, and c is constant

Question 25

Formula for Quantity Demanded (Qd)

Answer 25

Qd = a – bP; where P is price, and a is constant

Question 26

Formula to solve for the equilibrium

Answer 26

Qs = Qd
c + dP = a - bP

Question 27

Sometimes, the government sets a price floor or a price ceiling. This intervention could bring about _______ or _______.

Answer 27

surplus or shortage

Question 28

Experienced when the price of a good is above the equilibrium point.

Answer 28

Surplus

Question 29

This means the quantity supplied exceeds the quantity demanded. (Qs > Qd)

Answer 29

Surplus

Question 30

Experienced when the price of a good is below the equilibrium point.

Answer 30

Shortage

Question 31

This means that the quantity demanded exceeds quantity supplied. (Qd > Qs)

Answer 31

Shortage