WEEK 4

Question 1

A relation between the price of a good and the quantity that consumers are willing and able to buy per period, other things constant.​​

Answer 1

Demand ​

Question 2

The quantity of a good that consumers are willing and able to buy per period relates inversely, or negatively, to the price, other things constant.​​

Answer 2

Law of Demand​​

Question 3

When the price of a good falls, that good becomes cheaper compared to other goods, making consumers more willing to substitute that good for other goods.

Answer 3

Substitution Effect of a Price Change

Question 4

A fall in the price of a good increases the quantity demanded for a second reason. Suppose you earn Php3,000 a week from a part-time job, so Php3,000 is your money income.

Answer 4

Income Effects of a Price Change​

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Question 5

The number of pesos a person receives per period, such as Php3,000 per week.​ is simply a person’s income in money or rather the dollar amount of a person’s income.

Answer 5

Money Income

Question 6

Measured by the goods and services it can buy; real income changes when the price changes. refers to the income an individual or group receives after an adjustment is applied for inflation (a sustained increase in the price levels of goods and services).

Answer 6

Real Income

Question 7

A curve showing the relation between the price of a good and the quantity consumers are willing and able to buy per period, other things constant.

Answer 7

Demand Curve​

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Question 8

​​The amount of a good consumers are willing and able to buy per period at a particular price, as reflected by a point on a demand curve.

Answer 8

Quantity Demanded ​

Question 9

The relation between the price of a good and the quantity purchased per period by an individual consumer, other things constant.​

Answer 9

Individual Demand

Question 10

The relations between the price of a good and the quantity purchased per period by all consumers in the market, other things constant; sum of the individual demands in the market.​

Answer 10

Market Demand

Question 11

5 FACTORS OF DEMAND

Answer 11

1. Changes in Income (the income effect)
2. Prices or availability of substitutes (substitution effect)
3. Prices or availability of complementary goods
4. Changes in the number of buyers
5. Changes in taste and preferences

Question 12

when income goes up, consumers buy more. when income goes down, consumers buy less.

Answer 12

Changes in income (the income effect)

Question 13

a substitute is a good that can be used in place of another.

Answer 13

Prices or availability of substitutes (substitution effect)

Question 14

complementary goods are things that are often sold or used together

Answer 14

Prices or availability of complementary goods

Question 15

more people (buyers), more sales

Answer 15

Changes in the number of buyers

Question 16

then vs. now

Answer 16

Changes in taste and preferences

Question 17

5 What Shifts a Demand Curve?​

Answer 17

The monetary income of the consumers​
The prices of other goods​
The number of the composition of consumers in the market​
Consumer tastes​

Question 18

Goods are classified into two broad categories, depending on how consumers respond to changes in money income.​​

Answer 18

Consumer Income​​

Question 19

TWO GOODS

Answer 19

Normal good​
Inferior good​

Question 20

A good, such as new clothes, for which demand increases, or shifts rightward, as consumer income rises.​

Answer 20

Normal good​

Question 21

Inferior good​

Answer 21

A good, such as used clothes, for which demand decreases, or shifts leftward, as consumer incomes rise.​​

Question 22

Goods, such as tacos and pizza, relate in such a way that an increase in the price of one shifts the demand for another rightward.​

Answer 22

Substitutes​

Question 23

Goods such as cars and gasoline, that relate in such a way that an increase in the price of one shifts the demand for the other leftward​

Answer 23

Complements​

Question 24

Factors that influence demand ,such as incomes and prices. A change in consumers income expectations can shift the demand curve.​

Answer 24

Consumer Expectations​

Question 25

The relationship between quantity demanded and price of goods and services.

Answer 25

Function

Question 26

A table presenting the quantity demanded for goods and services

Answer 26

Schedule

Question 27

The graphical presentation of the relationship between quantity demanded and price.

Answer 27

Curve

Question 28

A relationship between the price of a good and the quantity that producers are willing and able to sell per period, other things constant​

Answer 28

Supply ​

Question 29

It occurs at the price where the quantity demanded equals the quantity supplied. ​

Answer 29

Market Equilibrium

Question 30

5 What shifts a supply curve?

Answer 30

The state of technology and know-how
The prices of resources
The prices of other goods
Producers expectation
The number of producers in the market