Economics Demand Concepts Quiz

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