Economics Demand Concepts Quiz
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Questions and Answers

What is the primary characteristic of a goods market?

  • It involves the buying and selling of consumer goods. (correct)
  • It involves the exchange of currencies.
  • It is where financial securities are traded.
  • It focuses on labor employment and services.

    • Which market is primarily associated with the trading of debt securities?

  • Stock Market
  • Bond Market (correct)
  • Money Market
  • Foreign Exchange Market

    • What does a shift in the demand curve indicate?

  • A decrease in consumer income only.
  • A change in the product's own price.
  • A change in quantity demanded due to a price change.
  • An increase or decrease in the entire demand for a product. (correct)

    • What does the income effect refer to?

    <p>The change in a consumer's purchasing power due to price changes.</p> Signup and view all the answers

    What does the Law of Demand state?

    <p>As price increases, quantity demanded decreases.</p> Signup and view all the answers

    Which of the following is a non-price determinant of demand?

    <p>Consumer preferences</p> Signup and view all the answers

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

    <p>The change in quantity demanded as price changes</p> Signup and view all the answers

    In which market do workers offer services and seek employment?

    <p>Labor Market</p> Signup and view all the answers

    If the price of sweet potatoes rises from 25 pesos to 30 pesos, what would happen to the quantity demanded?

    <p>It would decrease.</p> Signup and view all the answers

    What is the substitution effect?

    <p>Changing demand due to price shifts of related goods.</p> Signup and view all the answers

    What happens to the demand curve when there is a significant increase in consumer income?

    <p>It shifts to the right.</p> Signup and view all the answers

    Which of the following is NOT a type of financial market?

    <p>Consumer Goods Market</p> Signup and view all the answers

    If the quantity demanded for sweet potatoes at 29 pesos is 4 pieces, what is the quantity demanded at 27 pesos, based on the provided demand function?

    <p>12 pieces</p> Signup and view all the answers

    What does the term 'ceteris paribus' mean in economics?

    <p>All variables are held constant except those being studied.</p> Signup and view all the answers

    Which of the following would result in a movement along the demand curve rather than a shift?

    <p>A change in the price of sweet potatoes.</p> Signup and view all the answers

    If demand decreases due to external factors, what is the expected change in the demand curve?

    <p>Shifts to the left</p> Signup and view all the answers

    What was the employment rate in June 2024?

    <p>96.1%</p> Signup and view all the answers

    What percentage of Overseas Filipino Workers (OFWs) worked abroad with existing work contracts in 2019?

    <p>96.8%</p> Signup and view all the answers

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

    <p>116,010,975</p> Signup and view all the answers

    Which age group has the highest percentage of Overseas Filipino Workers (OFWs)?

    <p>30 to 34 years</p> Signup and view all the answers

    What was the unemployment rate in June 2024?

    <p>3.9%</p> Signup and view all the answers

    What percentage of female OFWs belong to the age group 25 to 34 years?

    <p>46.9%</p> Signup and view all the answers

    What does the underemployment rate indicate as of June 2024?

    <p>12.3%</p> Signup and view all the answers

    Which occupation category did the majority of OFWs belong to?

    <p>Elementary occupations</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

    To which foreign currency does the conversion rate of 0.384 correspond?

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

    What is the purpose of savings as defined in the content?

    <p>To set aside a portion of income for future use</p> Signup and view all the answers

    What was the new minimum wage rate for non-agriculture sectors in NCR effective July 16, 2023?

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

    How is rent defined in the provided content?

    <p>As payment for the use of land or buildings belonging to others</p> Signup and view all the answers

    Why is trading with other countries considered important for the economy?

    <p>It impacts the economy positively</p> Signup and view all the answers

    What comprised 12.2 percent of OFWs' employment?

    <p>Plant and machine operators and assemblers</p> Signup and view all the answers

    What is considered the 'life blood' of the government?

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

    What is the equilibrium price of fresh eggs as determined by the supply and demand equations?

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

    What is the quantity demanded for fresh eggs when the price is 8 Php?

    <p>39 pieces</p> Signup and view all the answers

    What does the equation Qd = 63 - 3P represent?

    <p>The quantity demanded of fresh eggs</p> Signup and view all the answers

    Based on the market equilibrium schedule for cheddar cheese, what is the quantity supplied when the price is 150 Php?

    <p>70 units</p> Signup and view all the answers

    In the context of housing, what percentage of households own their house outright?

    <p>57.3%</p> Signup and view all the answers

    What is the relationship between price and quantity supplied represented by the equation Qs = -25 + 5P?

    <p>Directly proportional with a positive intercept</p> Signup and view all the answers

    What is the quantity demanded when the price of cheddar cheese is 160 Php?

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

    Which of the following household ownership types represents the smallest percentage?

    <p>Own house in rent-free lot without owner consent</p> Signup and view all the answers

    What is the equilibrium quantity of cheddar cheese determined by the supply and demand equations?

    <p>58 units</p> Signup and view all the answers

    If the price of fresh eggs increases to 15 Php, what is the quantity supplied according to the schedule?

    <p>50 pieces</p> Signup and view all the answers

    What is the equilibrium quantity of sweet potatoes when the equilibrium price is 24.60 pesos?

    <p>21.60 kilos</p> Signup and view all the answers

    In the demand function Qd = 120 - 4P, what is the maximum quantity demanded when the price is zero?

    <p>120 kilos</p> Signup and view all the answers

    What is the slope of the supply function derived from Qs = -126 + 6P?

    <p>6</p> Signup and view all the answers

    At what price does the quantity supplied become zero according to the supply schedule provided?

    <p>26 pesos</p> Signup and view all the answers

    What is the total quantity demanded at a price of 27 pesos according to the demand schedule?

    <p>36 kilos</p> Signup and view all the answers

    What was the employment rate in June 2024?

    <p>96.1%</p> Signup and view all the answers

    In 2019, what percentage of Overseas Filipino Workers (OFWs) worked abroad without existing contracts?

    <p>3.2%</p> Signup and view all the answers

    Which age group comprised the largest proportion of OFWs?

    <p>30 to 34 years</p> Signup and view all the answers

    What is the unemployment rate in June 2024?

    <p>3.9%</p> Signup and view all the answers

    What percentage of OFWs belong to elementary occupations?

    <p>39.6%</p> Signup and view all the answers

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

    <p>116,010,975</p> Signup and view all the answers

    In terms of gender, what percentage of OFWs was female?

    <p>56.0%</p> Signup and view all the answers

    What was the underemployment rate as of June 2024?

    <p>12.3%</p> Signup and view all the answers

    What percentage of Overseas Filipino Workers (OFWs) worked as plant and machine operators and assemblers?

    <p>12.2 percent</p> Signup and view all the answers

    What is the exchange rate of the Euro to the Philippine Peso as of September 15, 2023?

    <p>60.572</p> Signup and view all the answers

    What is the basic minimum wage for non-agriculture sectors in NCR effective July 16, 2023?

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

    In the context of the content, how is savings primarily defined?

    <p>Setting aside a portion of current income for future use</p> Signup and view all the answers

    Which of the following factors represents a change in demand rather than a change in quantity demanded for a commodity?

    <p>A decrease in consumer income</p> Signup and view all the answers

    In the demand function Qd = 120 - 4P, what can be inferred if the price of the commodity is set at 0?

    <p>The quantity demanded would be at its maximum</p> Signup and view all the answers

    Which of the following currencies has a lower conversion rate compared to the Philippine Peso?

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

    What is the likely effect on the demand curve if there is an increase in population?

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

    What is the purpose of taxation as described in the content?

    <p>To fund government operations</p> Signup and view all the answers

    What share of OFWs were classified as craft and related trade workers?

    <p>8.1 percent</p> Signup and view all the answers

    When analyzing a demand schedule, what does a point where quantity demanded is zero indicate?

    <p>The price exceeds consumer willingness to pay</p> Signup and view all the answers

    What comprises the positive difference when defining rent?

    <p>Actual payment made minus its market value</p> Signup and view all the answers

    In the context of the demand curve, what does a shift to the left typically indicate?

    <p>A decrease in the number of consumers</p> Signup and view all the answers

    How can expectations of future price changes impact current demand for a product?

    <p>They can decrease current demand if an increase is expected</p> Signup and view all the answers

    According to the market demand schedule for sweet potatoes, what happens when the price decreases from 30 pesos to 25 pesos?

    <p>The quantity demanded increases</p> Signup and view all the answers

    What does the term 'unwanted demand' refer to in the demand function Qd = 120 – 4P?

    <p>Demand that consumers cannot afford</p> Signup and view all the answers

    What happens to the quantity demanded for fresh eggs as the price increases from 5.00 Php to 15.00 Php?

    <p>It decreases by 30 pieces.</p> Signup and view all the answers

    Which price corresponds to the maximum quantity supplied for fresh eggs based on the supply equation?

    <p>15 Php</p> Signup and view all the answers

    What is the equilibrium price of fresh eggs when using the given equations Qd = 63 - 3P and Qs = -25 + 5P?

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

    How many pieces of cheddar cheese are demanded at a price of 150 Php based on the demand equation Qd = 350 - 2P?

    <p>140 pieces</p> Signup and view all the answers

    Which of the following represents a shift in the supply curve for fresh eggs?

    <p>An increase in production costs.</p> Signup and view all the answers

    What is the price at which the quantity supplied of cheddar cheese equals 70 pieces?

    <p>145 Php</p> Signup and view all the answers

    What percentage of households own their house outright, given the provided percentages?

    <p>57.3%</p> Signup and view all the answers

    If the market for fresh milk has a supply curve represented by Qs = -25 + 5P, what would be the quantity supplied at 125 Php?

    <p>500 liters</p> Signup and view all the answers

    For the given housing statistics, what overall impact does the population trend suggest for future housing affordability?

    <p>Fewer households will be able to afford housing.</p> Signup and view all the answers

    Study Notes

    Non-Price Determinants of Demand

    • Factors that can shift the demand curve, meaning a change in the entire demand for a product.
    • Examples include:
      • Income
      • Taste
      • Expectations of future price and income
      • Prices of related goods
      • Population

    The Law of Demand

    • As the price of a product increases, the quantity demanded for that product decreases.
    • The lower the price of a product, the higher the quantity demanded, and vice versa.
    • This relationship holds true under the assumption of ceteris paribus, meaning all other related variables are held constant.

    Market Demand Schedule for Sweet Potato

    • A table showing the inverse relationship between the price of sweet potato and the quantity demanded.
    • The table shows that as the price decreases, the quantity demanded for a kilo of sweet potato increases.
    • The table includes columns for the price, quantity demanded, and calculated quantity demanded using the demand function Qd = 120 – 4P.

    Market Demand Curve for Sweet Potato

    • A graphical representation of the relationship between price (P) and quantity demanded (Q or Qd).
    • The demand curve is downward sloping, illustrating the law of demand.

    Change in Quantity Demanded vs. Change in Demand

    • Change in quantity demanded occurs when the demand for a commodity changes due to a price change. This shift is represented by a movement along the demand curve.
    • Change in demand occurs when the demand for a commodity changes due to factors other than price (e.g., income, taste). This shift is represented by a shift of the demand curve itself to the left or to the right.

    Supply

    • Refers to the quantity of goods that a seller is willing to offer for sale.
    • The supply of a product influences its price and the allocation of resources in the market.

    Market

    • An interaction between buyers and sellers of goods and services for the purpose of trade or exchange.

    Goods Market

    • The most common type of market where consumers purchase goods.

    Labor Market

    • Where workers offer their services and look for jobs, and where employers look for workers to hire.

    Financial Market

    • Includes the stock market, where securities of corporations are traded.
    • Other examples include:
      • Interbank market
      • Stock Exchange
      • Money Market
      • Bond Market
      • Foreign Exchange market.

    Demand

    • The willingness of a consumer to buy a commodity at a given price.
    • Influenced by factors like income, price of related goods, and consumer preferences.

    Income Effect

    • When a change in the price of a good affects the consumer's real income or purchasing power.
    • A higher income allows consumers to buy more goods, while a lower income means buying fewer.

    Substitution Effect

    • When a change in the price of a good leads consumers to choose alternative, substitute goods.
    • This is particularly relevant when the price of the original good increases, making substitute goods relatively cheaper.

    Market Supply Curve for Fresh Eggs

    • A graphical representation of the relationship between the price of fresh eggs and the quantity supplied.
    • The curve is upward sloping, indicating that as the price of eggs increases, the quantity supplied also increases.

    Market Supply Curve for Fresh Milk

    • A graphical representation of the relationship between the price of fresh milk and the quantity supplied.
    • The curve is upward sloping, indicating that as the price of milk increases, the quantity supplied also increases.

    Market Equilibrium

    • Found where the demand curve and the supply curve intersect.
    • At this point, the quantity demanded and the quantity supplied are equal. This is considered the market-clearing price, where there is no excess supply or demand.

    Market Equilibrium Schedule for Cheddar Cheese

    • A table showing the relationship between the price of cheddar cheese and both the quantity demanded and the quantity supplied.
    • The table demonstrates how the equilibrium price and quantity can be determined by finding the point where the quantity demanded equals the quantity supplied.

    Population and Housing

    • In the Philippines, 26,374,653 households exist, with 57.3% owning their homes.
    • A significant proportion of households are renting or living in rent-free arrangements.
    • This data indicates a challenge in affordability for many households, especially as the population continues to grow.

    Employment Rate in June 2024

    • The Philippines' labor force participation rate in June 2024 was 64.4%.
    • The employment rate stood at 96.1% while the unemployment rate decreased to 3.9%.
    • The underemployment rate was 12.3%, indicating a need for more productive work opportunities.
    • The Philippine population has grown consistently over the past decades, reaching 116,010,975 as of September 2024.
    • The country continues to experience significant population growth pressures, impacting various aspects of the economy and society.

    Overseas Filipino Workers (OFWs)

    • In 2020, the number of OFWs was estimated at 2.2 million, with the majority (96.8%) having overseas contracts.
    • Female OFWs represent a higher proportion (56.0%) compared to male OFWs (44.0%).
    • The age group of 30 to 34 years comprises the largest proportion (22.6%) of OFWs.
    • The contribution of remittances from OFWs remains significant to the Philippine economy.

    Philippine Peso and Foreign Currency Exchange Rates

    • The Philippine peso is traded against various foreign currencies.
    • The exchange rates fluctuate based on market forces and macroeconomic factors.
    • International trade and economic relations are directly impacted by these exchange rates between the Philippine Peso and other currencies.

    Savings and Investment

    • Essential for economic growth and development.
    • Savings provide funds for future use, while investment builds the capital stock for increased production and consumption.
    • Both are crucial in building a sustainable future.

    Rent

    • Payment for using land or buildings owned by others.
    • It represents the positive difference between the actual payment made for a production factor and its capital value.

    Minimum Wage Rates

    • The Philippines has a national minimum wage system, with rates varying by location and industry sectors.
    • As of July 2023, the minimum wage for non-agriculture in the National Capital Region (NCR) was ₱610.00.

    Tax

    • Considered the lifeblood of the government, providing revenue for funding essential services and public programs.
    • Taxation is a crucial component of a functional economy, contributing to public welfare and development.

    Non-Price Determinants of Demand

    • Factors that can change the overall demand for a product, causing a shift in the demand curve.
    • Examples include changes in consumer income, taste preferences, expectations of future price changes, the availability of related goods, and population size.

    Demand Schedule

    • A table illustrating the inverse relationship between price (P) and the quantity demanded (Q or Qd).
    • Presents a clear view of how many units of a product consumers are willing to buy at specific price levels.

    Demand Function

    • A mathematical expression that details the relationship between quantity demanded (Qd) and price (P).
    • Allows for a precise calculation of quantity demanded at different price points.

    Market Equilibrium

    • Occurs when the quantity demanded (Qd) by buyers equals the quantity supplied (Qs) by sellers.
    • At this equilibrium price, the market is balanced with no surplus or shortage of goods.

    Equilibrium Price (EP) and Equilibrium Quantity (EQ)

    • EP: the specific price at which Qd and Qs are equal, resulting in a balanced market.
    • EQ: the specific quantity of goods transacted at the EP, where neither buyers nor sellers have an incentive to change their behavior.

    Change in Quantity Demanded vs. Change in Demand

    • Quantity Demanded: A movement along the demand curve due solely to a price change.
    • Demand: A shift in the entire demand curve caused by non-price factors like income, taste, or expectations.

    Supply

    • Refers to the quantity of goods that a seller is willing and able to offer for sale at a given price.

    Savings and Investment

    • Savings: Setting aside a portion of current income for future use, contributing to financial security and potential future investment.
    • Investment: Using capital to build and expand productive assets, leading to increased economic output and consumption.

    Rent

    • Payment for the use of land or buildings owned by someone else.
    • Represents the difference between the actual payment provided for the use of a factor of production (land, labor, capital) and the owner's costs.

    Minimum Wage Rates

    • Set by the government to ensure a minimum level of income for workers, especially in the National Capital Region (NCR).
    • Important for ensuring fair compensation for workers in various industries.

    Tax

    • A compulsory financial contribution levied by the government on individuals and businesses.
    • Funds public services and infrastructure, playing a vital role in the smooth functioning of the economy.

    Philippine Peso and Foreign Currencies

    • Trading of other countries is a crucial aspect of the global economy, requiring the exchange of currencies.
    • The Philippine peso's value fluctuates against other currencies, influencing the cost of imports and exports.

    Overseas Filipino Workers (OFWs)

    • A significant source of income for the Philippines, sending remittances back to their families.
    • The proportion of female OFWs is higher than male OFWs, with the majority aged 25-34.

    Population of the Philippines

    • Growing steadily, with the population reaching 116,010,975 as of September 2024.
    • Presents challenges for housing and infrastructure development.

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    Test your understanding of the non-price determinants of demand, the law of demand, and the market demand schedule specifically focusing on sweet potatoes. This quiz will explore how various factors influence demand and the relationship between price and quantity demanded in economic theory.

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