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?

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

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

    <p>Demand would exceed supply</p> Signup and view all the answers

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

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

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

    <p>Supply</p> Signup and view all the answers

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

    <p>Change in demand with respect to price</p> 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?

    <p>Shift the demand curve to the right</p> Signup and view all the answers

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

    <p>There is a movement along the demand curve</p> Signup and view all the answers

    Which of the following illustrates a scenario where demand increases?

    <p>An increase in the population size</p> 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?

    <p>20 pieces</p> 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?

    <p>Increases</p> Signup and view all the answers

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

    <p>Increase in housing prices</p> Signup and view all the answers

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

    <p>Monopoly</p> Signup and view all the answers

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

    <p>Set a ceiling on rental fees</p> Signup and view all the answers

    What defines perfect competition in the market?

    <p>Many buyers and sellers with a homogeneous product</p> Signup and view all the answers

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

    <p>Monopolistic Competition</p> Signup and view all the answers

    What is a characteristic of an oligopoly?

    <p>Interaction among a small number of firms</p> Signup and view all the answers

    Which of the following best describes the labor supply?

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

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

    <p>Close substitutes for the product</p> Signup and view all the answers

    What percentage of OFWs worked as technicians and associate professionals?

    <p>8.7 percent</p> Signup and view all the answers

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

    <p>Euro</p> 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?

    <p>₱610.00</p> Signup and view all the answers

    What is the main difference between savings and investment?

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

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

    <p>Rent</p> Signup and view all the answers

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

    <p>Savings</p> Signup and view all the answers

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

    <p>56.841</p> Signup and view all the answers

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

    <p>Craft and related trade workers</p> Signup and view all the answers

    What is the equilibrium price of fresh eggs?

    <p>11 Php</p> Signup and view all the answers

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

    <p>18 pieces</p> Signup and view all the answers

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

    <p>30 pieces</p> Signup and view all the answers

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

    <p>350 - 2P = -380 + 3P</p> Signup and view all the answers

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

    <p>46</p> Signup and view all the answers

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

    <p>8 Php</p> Signup and view all the answers

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

    <p>10.8%</p> Signup and view all the answers

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

    <p>Q = -25 + 5P</p> Signup and view all the answers

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

    <p>40</p> Signup and view all the answers

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

    <p>3.9%</p> 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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