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Questions and Answers
If the cost of factors of production for product B increases, and products A and B are related, what happens to the supply of product B?
If the cost of factors of production for product B increases, and products A and B are related, what happens to the supply of product B?
- The supply curve of product B shifts to the right.
- The supply curve of product A shifts to the right.
- The supply curve of product B shifts to the left. (correct)
- The supply curve of product A shifts to the left.
Referring to the provided market schedule for fishball, at what price does the market reach equilibrium?
Referring to the provided market schedule for fishball, at what price does the market reach equilibrium?
- 2
- 4
- 5
- 3 (correct)
Referring to the provided market schedule for fishball, what is the quantity of fishball that both consumers and producers agree upon at equilibrium?
Referring to the provided market schedule for fishball, what is the quantity of fishball that both consumers and producers agree upon at equilibrium?
- 50
- 30 (correct)
- 60
- 40
Based on the market schedule provided, what market condition exists when the price is ₱2.00?
Based on the market schedule provided, what market condition exists when the price is ₱2.00?
According to the provided market schedule, at which price will a surplus occur in the market?
According to the provided market schedule, at which price will a surplus occur in the market?
Based on a price of ₱1.00 per piece of fishball, what is the shortage?
Based on a price of ₱1.00 per piece of fishball, what is the shortage?
Assuming the supply curve shifts to the right while the demand curve remains unchanged, what will likely happen in the market?
Assuming the supply curve shifts to the right while the demand curve remains unchanged, what will likely happen in the market?
If the demand curve shifts to the left while the supply curve remains constant, what is the resulting impact on the market?
If the demand curve shifts to the left while the supply curve remains constant, what is the resulting impact on the market?
If supply decreases while demand remains constant, what market outcome is MOST likely?
If supply decreases while demand remains constant, what market outcome is MOST likely?
What is the MOST likely outcome if both the demand and supply curves shift rightward simultaneously?
What is the MOST likely outcome if both the demand and supply curves shift rightward simultaneously?
According to the provided text, what kind of relationship exists between price and the quantity demanded?
According to the provided text, what kind of relationship exists between price and the quantity demanded?
Compared to demand, how does supply relate to price?
Compared to demand, how does supply relate to price?
What is the condition in a market when the quantity demanded is equal to the quantity supplied?
What is the condition in a market when the quantity demanded is equal to the quantity supplied?
What market condition arises when the quantity demanded is less than the quantity supplied at a given price?
What market condition arises when the quantity demanded is less than the quantity supplied at a given price?
When the quantity demanded is greater than the quantity supplied, this is an example of what market condition?
When the quantity demanded is greater than the quantity supplied, this is an example of what market condition?
In mathematical terms, what does 'a' represent in both the demand and supply functions?
In mathematical terms, what does 'a' represent in both the demand and supply functions?
In the context of demand and supply functions, what does '$\Delta$' signify?
In the context of demand and supply functions, what does '$\Delta$' signify?
If the supply of a product increases significantly while demand remains constant, what typically occurs?
If the supply of a product increases significantly while demand remains constant, what typically occurs?
How does a plant using advanced machinery resulting in increased production capacity impact the market if demand remains constant?
How does a plant using advanced machinery resulting in increased production capacity impact the market if demand remains constant?
Considering the dynamics of demand and supply, what market outcome is expected if a typhoon damages the maize crop in Central Luzon, assuming demand for maize stays constant?
Considering the dynamics of demand and supply, what market outcome is expected if a typhoon damages the maize crop in Central Luzon, assuming demand for maize stays constant?
How would an increased demand for fireworks before New Year's Day, without any change in supply, affect the market for fireworks?
How would an increased demand for fireworks before New Year's Day, without any change in supply, affect the market for fireworks?
If a certain style of clothing becomes unfashionable causing demand to decrease while supply remains unchanged, what is the MOST likely outcome?
If a certain style of clothing becomes unfashionable causing demand to decrease while supply remains unchanged, what is the MOST likely outcome?
What is the effect on the equilibrium price if demand and supply both increase, and the increase in demand is equal to the increase in supply?
What is the effect on the equilibrium price if demand and supply both increase, and the increase in demand is equal to the increase in supply?
How is equilibrium achieved in a market?
How is equilibrium achieved in a market?
What role does equilibrium serve in a market?
What role does equilibrium serve in a market?
A new health protocol says everyone should wear facemasks. What happens in the market?
A new health protocol says everyone should wear facemasks. What happens in the market?
What happens when the quantity demanded is not equal to quantity supplied?
What happens when the quantity demanded is not equal to quantity supplied?
During an economic boom the supply stays constant, but demand grows- what is the impact?
During an economic boom the supply stays constant, but demand grows- what is the impact?
What represents a disequilibrium in a market?
What represents a disequilibrium in a market?
What happens to profit during a pandemic?
What happens to profit during a pandemic?
In the supply and demand graph, what is the Y axis usually express?
In the supply and demand graph, what is the Y axis usually express?
When quantity demanded is 160, quantity supply is 40, where is it in the graph?
When quantity demanded is 160, quantity supply is 40, where is it in the graph?
Quantity demand is 50, quantity supply is 150, what will likely happen?
Quantity demand is 50, quantity supply is 150, what will likely happen?
Flashcards
Interaksyon ng Demand at Supply
Interaksyon ng Demand at Supply
The interaction of demand and supply determines prices and quantities in the market.
Disequilibrium
Disequilibrium
When the quantity demanded equals the quantity supplied, leading to market equilibrium.
Shortage
Shortage
More demand than supply, leading to higher prices.
Surplus
Surplus
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Demand Curve
Demand Curve
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Supply Curve
Supply Curve
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Market Schedule
Market Schedule
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Demand Function
Demand Function
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Supply Function
Supply Function
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Increase in Supply
Increase in Supply
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Decrease in Supply
Decrease in Supply
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Increase in Demand
Increase in Demand
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Decreases in Demand
Decreases in Demand
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Simultaneous Shifts
Simultaneous Shifts
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Study Notes
Interaction of Demand and Supply
- The module focuses on the interaction of demand and supply in relation to price levels, products, and the market
Learning Target
- Explain how demand and supply interact to affect prices and the market
Demand and Supply in the Market
- Price and Demand: Price has an inverse relationship with demand; high prices lead to low demand, and low prices lead to high demand
- Price and Supply: Price has a direct relationship with supply; high prices encourage high supply, and low prices result in low supply
Determining Equilibrium
- Equilibrium occurs where demand and supply meet
- Three methods illustrate the interaction of demand and supply
Demand and Supply Curves
- Demand Curve: Shows the quantity demanded at varying prices, with a downward slope, exemplifying the Law of Demand
- Supply Curve: Shows the quantity supplied at different prices, with an upward slope, reflecting the Law of Supply
- Equilibrium Point: Occurs where the demand and supply curves intersect, indicating the point where Quantity Demanded (Qd) equals Quantity Supplied (Qs)
Market Schedule
- Equilibrium occurs where quantity demanded equals quantity supplied (Qd=Qs)
- Surplus exists when Qd < Qs, leading to excess supply
- Shortage exists when Qd > Qs, leading to a deficiency
Demand and Supply Function
- Mathematical equations calculate equilibrium by determining the value of price (P) using demand and supply functions.
- Value has to be substituted into demand and supply functions
- Solutions corresponds to the equilibrium quantity.
- Demand Function: Qd = a - bP, where 'a' is the intercept and 'b' is the slope.
- Supply Function: Qs = a + bP, where 'a' is the intercept and 'b' is the slope.
Price Determination
- Equilibrium determines the market price and quantity
- An increase in supply, while demand remains constant, leads to surplus, decreasing prices
- Reduced supply, with constant demand, results in shortages, increasing prices
Shifts in Supply
- If a plant upgrades machinery, it can increase production i.e. supply even if it doesn't increase prices
- If there is no shift in demand, there will be an excess in supply which lowers prices
Shifts in Demand
- If demand increases and suplly does not, there will be shortage in supply which will increase prices
Simultaneous Shifts in Demand and Supply
- When demand and supply increase proportionally, the equilibrium quantity changes, but the price remains stable
- Price stability occurs because the change in demand is matched by the change in supply
Disequilibrium
- Disequilibrium is described as a situation where demand and supply don't equate.
Shifts in the curves, prices and equilibriums
- ↑D, S = ↑Ep, 个Eq = higher equilibrium price and quantity
- ↓S, D = ↑Ep, ↓ Eq = higher equilibrium price and lower quantity
- ↑S, D = ↓Ep, 个Eq = lower equilibrium price and higher quantity
- ↓D, S = ↓Ep, ↓Eq = lower equilibrium price and quantity
- ↑D, ↑S= Ep, 个Eq = Unchanged price and higher quantity
- ↓D, ↓S= Ep, Eq= Unchanged price and lower quantity
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