Law of Demand and Ceteris Paribus

Flashcards covering the Law of Demand, the ceteris paribus assumption, and illustrative pricing examples from Grade 9 Economics.

What relationship does the Law of Demand state exists between price and quantity demanded?

An inverse or opposite relationship, where quantity demanded decreases when price increases, and quantity demanded increases when price decreases.

What does the concept of ceteris paribus signify regarding the Law of Demand?

It means that only price is changing while all other conditions or factors remain constant.

In the shopping cart example, what were the quantities demanded at prices of $P10$, $P20$, and $P30$?

At $P10$, $5$ pieces; at $P20$, $3$ pieces; and at $P30$, $1$ piece.

In the ballpoint pen example, what happens to the quantity purchased when the price changes from $P10$ to $P20$?

The quantity to be purchased decreases due to the price increase, following the Law of Demand under ceteris paribus.

According to the transcript, what non-price factors are held constant under ceteris paribus?

Income (kita), preferences/tastes (panlasa), number of buyers (bilang ng buyer), price of substitute products (presyo ng kapalit na produkto), and technology (teknolohiya).

How many concepts are noted in the transcript as helping to explain the inverse movement between price and quantity demanded?

Two concepts.

Based on the price points $P120$ and $P60$ shown in the transcript, how does quantity demanded compare between them?

Quantity demanded is low at $P120$ and high at $P60$.