Economics Demand Concepts Quiz

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Questions and Answers

What is the equilibrium price for sweet potatoes from the given functions?

24.60 Php (correct)

27.00 Php

21.60 Php

30.00 Php

What does the equilibrium quantity represent in the market?

The minimum quantity suppliers are willing to sell

The total sales at the highest price point

The amount of products bought and sold at a specific price (correct)

The quantity of products produced regardless of demand

From the supply and demand functions given, what is the equilibrium quantity of sweet potatoes?

21.60 kilos (correct)

30 kilos

24 kilos

15 kilos

Which of the following statements correctly describes the supply function?

Supply is expressed as Qs=-126+6P, showing a direct relationship with price. Signup and view all the answers

If the price were lower than the equilibrium price, what is a likely market condition?

Demand would exceed supply Signup and view all the answers

What is primarily indicated by a shift in the demand curve?

A change in demand due to non-price determinants Signup and view all the answers

Which of the following is NOT considered a non-price determinant of demand?

Supply Signup and view all the answers

In the demand function Qd = 120 - 4P, what does the coefficient of P represent?

Change in demand with respect to price Signup and view all the answers

How would a rise in consumer expectations regarding future income likely impact the demand curve for a normal good?

Shift the demand curve to the right Signup and view all the answers

What occurs during a change in quantity demanded due to a price change?

There is a movement along the demand curve Signup and view all the answers

Which of the following illustrates a scenario where demand increases?

An increase in the population size Signup and view all the answers

Referring to the demand schedule for sweet potatoes, what is the quantity demanded at a price of Php 25?

20 pieces Signup and view all the answers

When the price of a product is reduced, what generally happens to the quantity demanded as per the law of demand?

Increases Signup and view all the answers

What is a consequence of the housing supply being less than the existing demand?

Increase in housing prices Signup and view all the answers

Which market structure is characterized by a single firm selling a product with no close substitutes?

Monopoly Signup and view all the answers

What does the Rent Control Law aim to achieve in the housing market?

Set a ceiling on rental fees Signup and view all the answers

What defines perfect competition in the market?

Many buyers and sellers with a homogeneous product Signup and view all the answers

Which market structure is exemplified by firms that sell differentiated products with easy entry and exit?

Monopolistic Competition Signup and view all the answers

What is a characteristic of an oligopoly?

Interaction among a small number of firms Signup and view all the answers

Which of the following best describes the labor supply?

Those who are willing and able to work including those seeking employment Signup and view all the answers

In terms of economic interaction, what is typically lacking in a monopoly?

Close substitutes for the product Signup and view all the answers

What percentage of OFWs worked as technicians and associate professionals?

8.7 percent Signup and view all the answers

Which currency has the highest conversion rate against the Philippine Peso?

Euro Signup and view all the answers

How much is the daily minimum wage for non-agriculture workers in the National Capital Region as of July 2023?

₱610.00 Signup and view all the answers

What is the main difference between savings and investment?

Savings is a process of setting aside income; investment builds capital. Signup and view all the answers

Which term refers to the payment for the use of land or buildings owned by others?

Rent Signup and view all the answers

What portion of current income is set aside for future use called?

Savings Signup and view all the answers

According to the data, what is the conversion rate of the Dollar against the Philippine Peso?

56.841 Signup and view all the answers

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

Craft and related trade workers Signup and view all the answers

What is the equilibrium price of fresh eggs?

11 Php Signup and view all the answers

At a price of 15 Php for fresh eggs, what is the quantity demanded?

18 pieces Signup and view all the answers

What quantity of fresh eggs is supplied when the price is 11 Php?

30 pieces Signup and view all the answers

To find the equilibrium quantity of cheddar cheese, what equation is used?

350 - 2P = -380 + 3P Signup and view all the answers

What is the correct quantity demanded when the price of cheddar cheese is 150 Php?

46 Signup and view all the answers

At which price does the supply of fresh eggs first increase above zero?

8 Php Signup and view all the answers

How many households do not own any part of their housing?

10.8% Signup and view all the answers

What is the equation that represents the quantity supplied for fresh eggs?

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

If the equilibrium price of cheddar cheese is 140 Php, what is the quantity supplied at this price?

40 Signup and view all the answers

What is the proportion of households that own houses but rent the lot?

3.9% Signup and view all the answers

Study Notes

Non-Price Determinants of Demand

Changes in income, taste, future price and income expectations, prices of related goods, and population can affect the demand for a product
These changes are referred to as shifts in the demand curve

Demand Schedule

A table showing the inverse relationship between the price and quantity demanded for a good
Represents the quantity of a specific good consumers are willing to buy at a given price

Demand Function

A mathematical expression that shows the relationship between quantity demanded and price
Quantity demanded is represented by Qd
Unwanted demand is represented by the constant value (UD)
Change in demand is represented by the coefficient multiplied by price (4P)
Price is represented by P

Change in Quantity Demanded

Occurs when there is a change in price, resulting in a move along the demand curve

Change in Demand

Occurs when factors other than price affect demand, resulting in a shift of the demand curve either to the left or right

Supply

The quantity of a good sellers are willing to offer at a given price

Equilibrium Quantity

The quantity of a good that both buyers and sellers agree on at a specific price

Market Equilibrium

Occurs when the quantity demanded is equal to the quantity supplied (Qd=Qs)

Computation Practices

Compute for the demand and supply schedule
Graph the demand and supply curves
Compute for the equilibrium price and equilibrium quantity

Labor Supply

Refers to the portion of the population aged 15 years and over who are willing and able to work, including those actively seeking work and those employed
Workers are categorized by their profession: plant and machine operators and assemblers, technicians and associate professionals, professionals, and craft and related trade workers

Philippine Peso

As of September 15, 2023, the exchange rate for 1 Philippine Peso was:
- USD 56.841
- JPY 0.384
- EUR 60.572
- SAR 15.615

Savings and Investment

Savings is the act of setting aside a portion of current income for future use
Investment refers to building up capital stock for future production and consumption

Rent

Payment for the use of land or buildings owned by others
Rent is the positive difference between the actual payment for a factor of production and its owner’s value

Minimum Wage Rates in the National Capital Region (NCR)

As of July 16, 2023, the minimum wage rates for the NCR, per Wage Order NCR-24:
- Non-Agriculture: ₱610.00
- Agriculture (Plantation and Non-Plantation), Retail/Service Establishments employing 15 workers or less, and Manufacturing Establishments regularly employing less than 10 workers: ₱573.00

Taxation

Taxation is considered the lifeblood of the government

Market Structures

Competition: rivalry among sellers in a market.
- Perfect Competition:
  - many buyers and sellers with negligible impact on market price
  - homogeneous products sold by sellers
  - perfect mobility of resources
  - perfect knowledge of economic agents of market conditions
  - market price and output determined solely by forces of demand and supply
Imperfect Competition:
- Monopoly: a single firm with no close substitutes.
  - Examples: Meralco (electricity distribution), NAPOCOR (government-produced electricity)
  - Requires stricter government regulation
- Oligopoly: market dominated by a few strategically interacting firms.
  - Example: Oil firms (OPEC)
- Monopolistic Competition: products are differentiated, and entry/exit are easy.
  - Examples: Toyota, Honda, Mercedes Benz, fast food chains

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Description

Test your understanding of the non-price determinants of demand, demand schedules, demand functions, and the changes in quantity demanded. This quiz explores how different factors affect consumer behavior and market demand dynamics.