ECO - CO3

pakhet

price

the monetary value of a unit of commodity

demand curve

a schedule of the willingness and capacity of a consumer to buy a commodity at alternative prices at a given point in time ceteris paribus

demand schedule

what is this?

demand curve

what graph is this?

income

A higher level of _____will give a person a higher capacity to consume and vice versa

true

If the other good is a substitute, the increase in the price of the substitute good may increase the demand for the commodity at hand and vice versa

true

\n If the other good is a complementary good, a decrease in its price will have a positive impact on the demand of the good at hand and vice versa

expectation

\n If you believe that the price of gasoline will increase tomorrow, there is a tendency for consumers to increase their consumption today

taste

Shaped by cultural values, peer pressure or the power of advertising

market

Population and demographic changes

movement along the demand curve

\n Change in quantity demand resulting from the change in the price of the commodity

Shifts in demand curve

Changes in demand curve cased by any of the other factors beside the price of the commodity

positive

A ______ effect will shift the demand curve to the right (increase in the demand for a commodity)

negative

A ______ effect will shift the demand curve to the left (decrease in the demand for the commodity

Shift in the Demand Curve to the Right

what graph is this?

Substitution Effect

Decision of a consumer to substitute an expensive good with cheaper goods when there is a price change

Income Effect

An increase in purchasing power will enable the customer to buy more of the good and vice versa

Principle of Diminishing Marginal Utility

implies that the additional satisfaction (utility) provided by an additional commodity consumed is lower than the additional satisfaction given by the previous level of consumption of the commodity

supply curve

A schedule showing a direct or positive relationship between the price of the commodity and the level of output that the seller is willing to supply at a given point in time ceteris paribus

\
As the price of the commodity increases, there will be more sellers that will be willing to supply the good

supply schedule

what is this?

supply curve

what graph is this?

taxes

An increase in sales ______,__ real estate _____,__ and other business _____ can increase the cost of supplying a commodity which will in turn discourage sellers from increasing their supply

Labor-intensive technology

used if the cost of labor is relatively cheap

Capital-intensive technology

used if wages are high

Improvements in technology

can lower production cost and encourage firms to supply more

profit

difference between total revenue and total costs; main motivation to produce goods

maximum profit

attained when the difference between total revenue and total costs is the widest or marginal revenue is equal to marginal costs (marginal profit is zero)

Movement along the supply curve

Change in the price of the commodity

Shift in the supply curve

Changes in other factors affecting supply except the price of the commodity

shift in supply curve to the left

what graph is this?

equilibrium price

When buyers and sellers transact in the market and they agree on the price of the commodity and the amount to be sold and bought

disequilibrium

Cases when there are disagreements among buyers and sellers on the price and quantity (excess demand and excess supply)

market equilibrium

what graph is this?

excess demand and excess supply

what graph are these?

Shift in the Demand Curve to the Right

what graph is this?

Shift in the Demand Curve to the Left

what graph is this?

Shift in the Supply Curve to the Right

what graph is this?

Shift in the Supply Curve to the Left

what graph is this?

Shift in the Demand Curve to the Right and Shift in the Supply curve to the Right (equal proportion)

what graph is this?

Shift of the Demand Curve to the Right and Shift of the Supply Curve to the Left (unequal proportion)

what graph is this?

price ceiling

prices cannot go higher than the mandated ______

price floor

prices cannot go lower than the mandated ______

price ceiling

what kind of other application of supply and demand analysis is this?

price floor

what kind of other application of supply and demand analysis is this?

Determination of the Wage Rate in the Labor Market

what kind of other application of supply and demand analysis is this?

Minimum Wage as Price Floor

what kind of other application of supply and demand analysis is this?

Determination of the Exchange Rate

what kind of other application of supply and demand analysis is this?

Market for OFW Services

what kind of other application of supply and demand analysis is this?

Determination of Rent

what kind of other application of supply and demand analysis is this?

market power

The ability of any actor or group of actors in the market to significantly influence the price in the market and the quantity to be produced and sold

market competition

A market structure where no single seller or buyer has power to determine the price and the level of output in the market

monopoly

A market structure characterized by a single seller in the market

oligopoly

A market structure characterized by few sellers producing similar and differentiated products

Monopolistic Competition

\n This market structure has the elements of both competitive and monopolistic markets

savings

attracting a lot of customers, accessible to workers and near to clients and service providers

minimum wage

an example of floor price that prevents the market to seek its equilibrium condition because of a government policy

taxes

can increase the cost of business operations and can threaten the profitability of business enterprises at their initial stage of operations