Podcast Beta
Questions and Answers
What is the equilibrium quantity if the equilibrium price is $24.60?
What equation can be used to find the equilibrium price?
Using the demand function $Qd=120-4P$, what is the quantity demanded at a price of $21.00?
If the supply function is $Qs=-126+6P$, what does it indicate when $P$ is less than $21.00?
Signup and view all the answers
At what price does the quantity supplied become zero according to the supply schedule provided?
Signup and view all the answers
What is the primary characteristic of the goods market?
Signup and view all the answers
Which market is characterized by the exchange of goods for services between employers and workers?
Signup and view all the answers
What effect describes the change in demand due to a change in the price of a good resulting in consumers opting for cheaper substitutes?
Signup and view all the answers
Which statement is true based on the law of demand?
Signup and view all the answers
What constitutes a key feature of the financial market?
Signup and view all the answers
What does the term 'ceteris paribus' imply in economic analysis?
Signup and view all the answers
How does an increase in consumer income typically affect demand?
Signup and view all the answers
What happens to the quantity demanded of a good when its price rises, according to the law of demand?
Signup and view all the answers
What percentage of OFWs worked as technicians and associate professionals?
Signup and view all the answers
Which foreign currency has the highest conversion rate to the Philippine Peso as of September 15, 2023?
Signup and view all the answers
What is the newly adjusted basic minimum wage rate in the Non-Agriculture sector in the National Capital Region (NCR) as of July 16, 2023?
Signup and view all the answers
What is the primary purpose of savings according to the provided content?
Signup and view all the answers
Which of the following describes rent according to the content?
Signup and view all the answers
What percentage of OFWs comprised plant and machine operators and assemblers?
Signup and view all the answers
What role do taxes serve in relation to the government?
Signup and view all the answers
What is the conversion rate of the Dollar to the Philippine Peso mentioned in the content?
Signup and view all the answers
What is the primary reason for the rising housing prices?
Signup and view all the answers
Which market condition is characterized by a single seller and no close substitutes?
Signup and view all the answers
What type of competition allows for easy entry and exit of firms with differentiated products?
Signup and view all the answers
Which of the following is a common characteristic of perfect competition?
Signup and view all the answers
Which government action regulates rental prices to protect tenants?
Signup and view all the answers
What is typically needed in a monopoly market structure?
Signup and view all the answers
In which market structure do firms strategically interact with one another?
Signup and view all the answers
How is labor supply defined?
Signup and view all the answers
What is the equilibrium price of fresh eggs based on the given market demand and supply schedule?
Signup and view all the answers
How many pieces of fresh eggs are supplied at a price of 15 Php?
Signup and view all the answers
What is the quantity demanded of fresh eggs when the price is 10 Php?
Signup and view all the answers
According to the equations given, what is the demand function for fresh eggs?
Signup and view all the answers
What is the equilibrium quantity of cheddar cheese based on the calculated demand and supply both equating at price 146 Php?
Signup and view all the answers
What proportion of households own their homes based on the provided statistics?
Signup and view all the answers
At what price does the quantity supplied of fresh eggs match the quantity demanded of 30 pieces?
Signup and view all the answers
What is the supply function equation for fresh eggs as depicted in the provided schedules?
Signup and view all the answers
When the price of cheddar cheese is set at 140 Php, what is the quantity demanded?
Signup and view all the answers
What percentage of households are renting a house and lot?
Signup and view all the answers
Study Notes
Market Interactions
- A market is a place where buyers and sellers interact, trading goods and services.
Types of Markets
- Goods Markets: Where consumers purchase goods.
- Labor Markets: Where workers offer services and employers hire.
- Financial Markets: A broad category encompassing:
- Interbank Markets: Financial transactions between banks.
- Stock Exchanges: Trading of securities of corporations.
- Money Markets: Short-term loan transactions between financial institutions.
- Bond Markets: Where investors buy debt securities issued by companies and governments.
- Foreign Exchange Markets: Exchange currencies at prevailing rates.
Demand
- The willingness of a buyer to purchase a product at a specific price.
Factors Affecting Demand
- Income Effect: Changes in purchasing power due to price changes.
- Higher income typically leads to increased demand for goods.
- Substitution Effect: Changes in demand based on availability of alternative products.
- Price increases for one product can cause consumers to switch to cheaper alternatives.
The Law of Demand
- As a product's price increases, the quantity demanded decreases.
- Consumers often buy more when prices are low.
- Ceteris Paribus: Means all other relevant factors are kept fixed when evaluating a relationship between price and quantity.
Equilibrium
- Equilibrium Quantity: The specific quantity of a product that both buyers and sellers agree to exchange, at a given price.
- Equilibrium point is where the quantity demanded equals the quantity supplied: Qd = Qs.
Examples of Demand and Supply Schedules
- Market Equilibrium Schedule for Sweet Potatoes:
- Demonstrates price and quantity relationships, showing where equilibrium might occur.
- Example: Qd = 120 - 4P, Qs = -126 + 6P.
- Market Demand Schedule for Fresh Eggs:
- Shows the relationship between the price of eggs and the quantity demanded.
- Example: Qd= 63 – 3P and Qs = -25 + 5P.
- Market Supply for Fresh Milk:
- Shows how suppliers respond to various price levels.
- Cheddar Cheese Market:
- Example of a market with supply and demand functions, Qd = 350-2P and Qs=-380+3P, used to determine market equilibrium.
Housing Market in the Philippines
- There are around 26,374,653 households in the Philippines.
- 57.3% of households own their homes.
- Housing is a major concern, with demand exceeding supply.
- Rising real estate prices and construction costs contribute to the affordability challenge.
Market Structures
- Competition: Rivalry among sellers in a market.
Types of Market Structures
- Perfect Competition:
- Many buyers and sellers, each with negligible impact on market price.
- Identical products are sold by sellers.
- Resources move freely between markets.
- Everyone has perfect knowledge of market conditions.
- Supply and demand exclusively determine price and output.
- Imperfect Competition:
- Monopoly: One firm dominates the market with no close substitutes.
- Examples: Meralco (electricity distribution in Metro Manila), NAPOCOR. - Government regulations may be necessary. - Oligopoly: A market dominated by a few strategically interacting firms.
- Examples: Oil companies, OPEC (Organization of the Petroleum Exporting Countries).
- Monopolistic Competition: Differentiated products, with easy entry and exit for businesses.
- Examples: Toyota, Honda, Mercedes Benz, Fast food chains.
- Monopoly: One firm dominates the market with no close substitutes.
Economic Issues in the Philippines
- ** Labor Force**: The portion of the population (age 15 and over) willing and able to work.
- Includes those seeking work but not yet employed and those currently employed.
-
OFWs (Overseas Filipino Workers): Significant contributions to the economy.
- Occupations heavily represented: plant and machine operators, assemblers, technicians, etc.
-
Philippine Peso and Foreign Currencies:
- Trading with other countries involves foreign exchange.
- Philippine Peso fluctuations affect the economy.
- Saving and Investment: Essential for future growth.
- Rent: Payment for the use of land or buildings.
- Minimum Wage Rates: Set by the government, vary by region and sector, impact individual and national income.
- Taxes: Essential source of government revenue.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore the different types of markets and the dynamics of demand in this quiz. Understand how buyers and sellers interact in goods, labor, and financial markets. Delve into concepts like the income effect and substitution effect that influence demand.
