Economics Demand Concepts Quiz

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Questions and Answers

What is the effect of non-price determinants on demand?

They only affect supply, not demand.

They cause movement along the demand curve.

They shift the demand curve to the left or right. (correct)

They change the price of the product.

What does a demand schedule illustrate?

The relationship between market price and quantity demanded. (correct)

The market trends of different commodities.

The correlation between income and supply.

The changes in supply over time.

In the demand function Qd = 120 – 4P, what does '4' signify?

The total number of products in the market.

The change in demand as price changes. (correct)

The price elasticity of demand.

The maximum quantity demanded.

How would a decrease in consumer income likely affect the demand curve for a normal good?

It shifts the demand curve to the left. Signup and view all the answers

What happens when the price of a substitute good increases?

Demand for the original good increases. Signup and view all the answers

Which statement best describes a shift in the demand curve?

It reflects a change in demand due to factors other than price. Signup and view all the answers

Which point on the demand schedule indicates that the quantity demanded is zero?

Point A Signup and view all the answers

What does a downward shift in the demand curve typically indicate?

A decrease in population size. Signup and view all the answers

What is the definition of demand in a market context?

The willingness of a consumer to buy a commodity at a given price Signup and view all the answers

Which market primarily involves the buying and selling of securities?

Financial market Signup and view all the answers

How does the income effect influence consumer behavior?

It affects purchasing power based on price changes of goods Signup and view all the answers

What does the substitution effect describe?

The change in demand due to alternatives being cheaper Signup and view all the answers

According to the Law of Demand, what happens when the price of a good increases?

The quantity demanded decreases Signup and view all the answers

Which of the following best describes 'ceteris paribus'?

All other variables are fixed except those under study Signup and view all the answers

Which market is characterized by workers seeking jobs and employers hiring?

Labor market Signup and view all the answers

Which method primarily deals with the trade in short-term loans between financial institutions?

Money market Signup and view all the answers

What was the unemployment rate in June 2024?

3.9% Signup and view all the answers

Which age group had the highest proportion of Overseas Filipino Workers (OFWs)?

30 to 34 years Signup and view all the answers

What percentage of OFWs worked abroad without a contract?

3.2% Signup and view all the answers

Which year had the lowest employment rate?

2021 Signup and view all the answers

As of September 2024, what is the population of the Philippines?

116 million Signup and view all the answers

What percentage of female OFWs were aged 15 to 24 years?

7.0% Signup and view all the answers

What was the underemployment rate in June 2024?

12.3% Signup and view all the answers

In which occupation did the largest number of OFWs work?

Elementary occupations Signup and view all the answers

What is the equilibrium price of fresh eggs?

Php 11.00 Signup and view all the answers

Which equation represents the demand for fresh eggs?

Qd = 63 - 3P Signup and view all the answers

At a price of Php 15.00, how many fresh eggs are demanded?

18 Signup and view all the answers

What is the equilibrium quantity of cheddar cheese?

58 Signup and view all the answers

At a price of Php 155.00, what is the quantity supplied for cheddar cheese?

85 Signup and view all the answers

What is the percentage of households that own a house but rent the lot?

3.9% Signup and view all the answers

According to the provided data, what trend is observed regarding housing affordability?

Fewer households can afford housing. Signup and view all the answers

What is the equation for the supply of fresh eggs?

Qs = -25 + 5P Signup and view all the answers

At a price of Php 140, what is the quantity demanded for cheddar cheese?

70 Signup and view all the answers

Which of the following best describes the market supply curve for fresh milk?

It typically slopes upward. Signup and view all the answers

What percentage of OFWs worked as plant and machine operators and assemblers?

12.2% Signup and view all the answers

What is the exchange rate of the Euro in relation to the Philippine Peso as noted?

60.572 Signup and view all the answers

What is the new minimum wage for the Non-Agriculture sector in NCR as of July 16, 2023?

₱610.00 Signup and view all the answers

Which of the following best defines 'savings' according to the provided content?

Setting aside income for future use Signup and view all the answers

What is the primary purpose of taxes as described?

To serve as the government's financial resource Signup and view all the answers

In the context of trading, what is essential for engaging with other countries?

Foreign currencies Signup and view all the answers

Which type of worker comprised the smallest percentage among the OFWs listed?

Craft and related trade workers Signup and view all the answers

What does the term 'investment' refer to in the provided context?

Building up capital stock for future production and consumption Signup and view all the answers

Study Notes

Non-Price Determinants of Demand

Factors that affect demand for goods include income, taste, future price and income expectations, prices of related goods, and population. Changes in these factors shift the demand curve.

Demand Schedule and Function

A demand schedule is a table demonstrating the inverse relationship between price and quantity demanded.
A demand function is a mathematical equation expressing the relationship between price and quantity demanded.

Market Demand Curve

A graphical representation showing the relationship between price and quantity demanded.

Change in Quantity Demanded

Represents a shift along the demand curve due to a change in price.

Change in Demand

Represents a shift of the entire demand curve due to any factor other than price.
A shift to the left indicates a decrease in demand, and a shift to the right indicates an increase in demand.

Supply

Refers to the quantity of goods a seller is willing to offer for sale.

Market

Represents the interaction between buyers and sellers for the purpose of trading or exchange.

Goods Market

Where consumers buy consumer goods.

Labor Market

Where workers offer services and seek jobs, and employers look for employees to hire.

Financial Market

Involves the trade of corporate securities.

Examples of Financial Markets

Interbank: Transactions between banks.
Stock Exchange: Purchase and sale of securities.
Money Market: Trade in short-term loans between financial institutions.
Bond Market: Purchase of debt securities.
Foreign Exchange: Currency exchange at prevailing rates.

Demand

Represents a consumer's willingness to buy a commodity at a given price.

Income effect

A change in the price of a good affects a consumer's real income and purchasing power (the ability to buy goods with a given income).

Substitution Effect

Changes in the price of a good can influence demand due to the consumption of substitute goods.

The Law of Demand

As price increases, quantity demanded decreases. Lower prices encourage consumers to buy more.
Ceteris paribus means all other factors except the studied variable are held constant.

Equilibrium Price and Quantity

The equilibrium price and quantity occur where the supply and demand curves intersect.

Population and Housing

There are 26,374,653 households in the country, with 57.3% owning their houses, indicating a demand for owner-occupied housing.

Employment Rate

The employment rate in June 2024 was 96.1%, with an unemployment rate of 3.9%.

Current Daily Minimum Wage Rates

The minimum wage in the National Capital Region (NCR) as of July 16, 2023, ranges from ₱573.00 to ₱610.00.

Savings, Investment, and Rent

Savings involve setting aside income for future use.
Investment involves building capital stock for future production.
Rent is the payment for using land or buildings belonging to others; represents the difference between the actual payment made for resources and the value returned to the owner.

Tax

Taxes are essential to the government's functioning.

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Description

Test your understanding of non-price determinants of demand, demand schedules, and the market demand curve. This quiz will challenge you on the key concepts related to how demand shifts and the factors that affect consumer purchasing behavior.