Economics: Supply and Demand Concepts

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Questions and Answers

What does the equilibrium quantity represent in a market?

The average quantity sold across all prices.

The maximum quantity of goods that buyers can purchase.

The total amount of goods that sellers are willing to produce.

The quantity of products that both buyers and sellers agree to transact at a specified price. (correct)

How is the equilibrium price determined?

By finding the price that maximizes consumer surplus.

At the intersection point of the demand and supply curves. (correct)

By calculating the total revenue and total costs.

By averaging the highest and lowest prices in the market.

Given the demand function $Qd=120-4P$, what is the quantity demanded at a price of 24.60 pesos?

60.00 kilos

24.60 kilos

36.00 kilos

21.60 kilos (correct)

If the supply function is given as $Qs=-126+6P$, what is the quantity supplied at an equilibrium price of 24.60 pesos?

21.60 kilos Signup and view all the answers

What does Qd = Qs signify in the context of market equilibrium?

The quantity demanded equals the quantity supplied. Signup and view all the answers

What happens to the quantity supplied when the price of a good increases?

It increases as sellers seek higher income. Signup and view all the answers

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

Changes in consumer preferences Signup and view all the answers

According to the supply function Qs = -126 + 6P, what does -126 represent?

The maximum quantity supplied at zero price Signup and view all the answers

What effect does an increase in the number of sellers have on the supply curve?

It causes the supply curve to shift right. Signup and view all the answers

Which situation would likely lead to a shift in the supply curve to the left?

A decrease in the number of producers Signup and view all the answers

What does equilibrium refer to in a market?

A state of balance when demand equals supply. Signup and view all the answers

What happens to the quantity supplied when there is a decrease in raw materials availability?

It decreases as production becomes more difficult. Signup and view all the answers

Which of the following is a correct expression for the quantity supplied when the price is Php 27?

36 Signup and view all the answers

What does Rent Control Law impose on rental fees?

It creates a mandatory ceiling on rental fees. Signup and view all the answers

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

Monopoly Signup and view all the answers

In which market structure is product differentiation common and entry and exit are easy?

Monopolistic Competition Signup and view all the answers

What characterizes perfect competition in a market?

Homogeneous products and perfect mobility of resources Signup and view all the answers

Which of the following best describes an oligopoly?

A few firms interact strategically to set prices Signup and view all the answers

Labor supply refers to which segment of the population?

Those capable and willing to work, including the unemployed Signup and view all the answers

Which factor does not influence the upward trend in real estate prices?

Government regulations on construction materials Signup and view all the answers

Which market structure requires stricter government regulation due to its nature?

Monopoly Signup and view all the answers

What was the employment rate in June 2024?

96.1% Signup and view all the answers

Which age group comprised the largest proportion of Overseas Filipino Workers (OFWs)?

30 to 34 years Signup and view all the answers

What is the unemployment rate reported in June 2024?

3.9% Signup and view all the answers

What percentage of Overseas Filipino Workers (OFWs) were female?

56.0% Signup and view all the answers

In which year was the total number of Overseas Filipino Workers estimated to be 2.2 million?

2019 Signup and view all the answers

What was the underemployment rate in June 2024?

12.3% Signup and view all the answers

Which occupation category accounted for the highest proportion of OFWs?

Elementary occupations Signup and view all the answers

Which of the following numbers reflects the population of the Philippines as of September 2024?

116,010,975 Signup and view all the answers

What percentage of overseas Filipino workers were employed as professionals?

8.5% Signup and view all the answers

What is the current exchange rate of the Philippine Peso to the Euro?

60.572 Signup and view all the answers

Which of the following describes savings?

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

What is the basic minimum wage for non-agriculture workers in the National Capital Region as of July 2023?

₱610.00 Signup and view all the answers

In economics, what does investment generally refer to?

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

What role does tax play in government?

It is the main revenue source for government Signup and view all the answers

What is the payment for using land or buildings belonging to others called?

Rental fee Signup and view all the answers

What percentage of overseas Filipino workers worked as technicians and associate professionals?

8.7% Signup and view all the answers

Study Notes

Market Equilibrium

Equilibrium quantity represents the amount of a good that both buyers and sellers agree to exchange at a specific price.
Equilibrium price is determined where the demand and supply curves intersect.
When Qd = Qs, the market is in equilibrium, meaning the quantity demanded equals the quantity supplied.
An increase in the price of a good usually leads to an increase in the quantity supplied.

Supply Determinants

Non-price determinants of supply include: cost of inputs, technology, expectations, government policies, and number of sellers.
In the supply function Qs = -126 + 6P, -126 represents the intercept, indicating the quantity supplied when the price is zero.
An increase in the number of sellers shifts the supply curve to the right.
A decrease in raw materials availability shifts the supply curve to the left.

Market Structures

Rent Control Law imposes limitations on rental fees to prevent excessive increases.
Monopoly is characterized by a single firm with no close substitutes.
Monopolistic competition is characterized by product differentiation, easy entry and exit.
Perfect competition is characterized by numerous buyers and sellers, homogeneous products, and perfect information.
Oligopoly is a market structure dominated by a few large firms.

Labor and Real Estate

Labor supply refers to the willingness and ability of individuals to work at a specific wage rate.
Factors influencing upward trends in real estate prices include: demand, inflation, and government policies.
Monopoly requires stricter government regulation due to its potential for price manipulation.

Philippine Economic Data

The unemployment rate in June 2024 was [insert rate here].
The largest proportion of OFWs were in the age group of [insert age group here].
[Insert percentage here] of OFWs were female.
The total number of OFWs was estimated to be 2.2 million in [insert year here].
The underemployment rate in June 2024 was [insert rate here].
The highest proportion of OFWs were employed as [insert occupation category here].
The population of the Philippines as of September 2024 was [insert population here].
The exchange rate of the Philippine Peso to the Euro was [insert rate here].

Economics Fundamentals

Savings represent the portion of income that is not spent on consumption.
The basic minimum wage for non-agriculture workers in the National Capital Region as of July 2023 was [insert wage here].
Investment in economics typically refers to the purchase of capital goods like machinery and equipment.
Tax plays a crucial role in government, providing revenue for public services and regulating the economy.
Rent is the payment for using land or buildings belonging to others.
The percentage of OFWs who worked as technicians and associate professionals was [insert percentage here].

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Description

This quiz covers fundamental concepts in economics related to the law of supply, non-price determinants, and supply functions. Explore the relationship between price changes and quantity supplied with practical examples like the market supply schedule for sweet potatoes. Gain a deeper understanding of how various factors influence market supply.