24 Questions
What is demand?
The desire for a particular good backed up by sufficient purchasing power.
What is the formula for demand?
Kagustuhan + Kakayahan = Demand
What is the dependent variable in the quantity demanded?
Qd
What is the determinant of supply that takes into consideration the price of raw materials and labor?
Cost of Production
What happens to the demand for goods and services when people like or prefer them?
The demand for goods and services increase
What is demand?
The desire for a particular good backed up by sufficient purchasing power
Which of the following is NOT a determinant of demand?
Weather
What is the dependent variable in the supply function?
Quantity supplied
What happens to the supply of goods when the cost of production increases?
It decreases
What is the difference between potential demand and effective demand?
Potential demand refers to the desire for a product while effective demand refers to the desire backed up by purchasing power
What is the difference between potential demand and effective demand?
Potential demand is the desire for a product without sufficient purchasing power, while effective demand is the desire for a product backed up by sufficient purchasing power.
What does the demand function represent?
The demand function represents the relationship between price and quantity demanded.
What is the formula for the demand function?
Qd = a – b(P)
What is the demand curve?
The demand curve is a graphic presentation that explains the negative relationship between price and quantity demanded.
What is the law of demand?
The law of demand states that if the price is high, the quantity demanded is low and vice versa.
What is the supply curve?
The supply curve is a graphic presentation that explains the positive relationship between price and quantity supplied.
What is market equilibrium?
Market equilibrium is attained at the point of intersection of the demand and supply curves, where the quantity supplied is also the quantity demanded for a certain price.
What is the definition of demand according to the text?
The desire for a product backed up by sufficient purchasing power
What is the formula for the demand function?
Qd = a - b(P)
What is the difference between potential demand and effective demand?
Potential demand refers to the desire for a product backed up by sufficient purchasing power, while effective demand refers to the number of products a consumer is willing to buy at a certain price.
What is the law of demand?
If the price is high, the quantity demanded is low and vice versa.
What is the supply schedule?
The different quantities that are offered for sale at various prices.
What is the supply function?
The mathematical equation that shows the relationship between price and quantity supplied.
What is market equilibrium?
The point where the quantity that sellers are willing to sell is equal to the quantity that buyers are willing to buy.
Study Notes
Introduction to Demand and Supply: Functions, Curves, and Equilibrium
- Demand is the desire for a product backed up by sufficient purchasing power.
- There are two types of demand: potential demand and effective demand.
- Quantity demanded (Qd) refers to the number of products a consumer is willing to buy at a certain price, while price (P) refers to the value a consumer is willing to pay.
- The demand function is a mathematical equation used to know the relationship between price and quantity demanded.
- The formula for the demand function is Qd = a – b(P), where a and b are given values.
- The demand schedule reflects the quantities of goods and services demanded by a consumer or an aggregate of consumers at any given price.
- The demand curve is a graphic presentation that explains the inverse relationship between price and quantity demanded.
- The law of demand states that if the price is high, the quantity demanded is low and vice versa.
- The supply schedule shows the different quantities that are offered for sale at various prices.
- The supply function is a mathematical equation that shows the relationship between price and quantity supplied.
- The supply curve is a graphic presentation that explains the positive relationship between price and quantity supplied.
- Market equilibrium is attained at the point of intersection of the demand and supply curves, where the quantity that sellers are willing to sell is also the quantity that buyers are willing to buy for a certain price.
"Master the Factors that Drive Demand: Take our Determinants of Demand Quiz!" Test your knowledge on the key determinants of demand and supply, and gain insights on how to differentiate between needs and wants. Sharpen your analytical skills by solving for the demand and supply functions. Get ready to boost your understanding of demand and become a pro in economic theories. Turn on your camera to ace this quiz!
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