Scribd
Upload
30 views

Social Studies Reviewer

The document discusses key concepts in economics including supply and demand. It defines demand as the consumer side of the market and explains the law of demand. Supply is defined as the quantity of a commodity a seller is willing to offer for sale at a given price and time. The law of supply explains typical seller behavior. Factors that can impact supply and demand include income, population, advertising, prices of substitutes and complements, and production costs. Elasticity measures the responsiveness of quantity to price changes and can be perfectly inelastic, inelastic, unitary, elastic, or perfectly elastic.

Uploaded by

Vaughn Siegfried Fuertez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
30 views

Social Studies Reviewer

The document discusses key concepts in economics including supply and demand. It defines demand as the consumer side of the market and explains the law of demand. Supply is defined as the quantity of a commodity a seller is willing to offer for sale at a given price and time. The law of supply explains typical seller behavior. Factors that can impact supply and demand include income, population, advertising, prices of substitutes and complements, and production costs. Elasticity measures the responsiveness of quantity to price changes and can be perfectly inelastic, inelastic, unitary, elastic, or perfectly elastic.

Uploaded by

Vaughn Siegfried Fuertez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Social studies reviewer:

The consumer side of the market is DEMAND


THE LAW OF DEMAND - consumers tend to buy more if the price is cheap and less if expensive. It
explains the behavior of the consumer in the market.
CLEARANCE SALE- is a period during which trader would sell products and reduced price.
In a market economy, purchases are reffered to as MONEY VOTES

 DEMAND SCHEDULE- table that shows the quantity of a product DEMANDED at different price
levels at a given time.
 DEMAND CURVE- it’s a graphical representation of a demand schedule
 SUPPLY SCHEDULE- is a table that shows the quantity supplied at a various price at a given time.
 SUPPLY CURVE- graphical representation of supply schedule.
 INDIVIDUAL DEMAND SCHEDULE/CURVE- SHOWS THE DATA OF A PERSON ONLY
 MARKET DEMAND SCHEDULE/CURVE- SHOWS THE DATA OF A WHOLE GROUP (MARKET)

UTILITY THEORY- suggests that the price of the product must be commensurate or equal or fair to its
quality or it’s usefulness. It uses UTIL as the HYPOTETHICAL unit for measuring consumer
Satisfaction

MARGINAL UTILITY- is the satisfaction derived from every additional unit of a product consumed

 Change in QUANTITY DEMANDED occurs when the demand for a product changes because the
price of the product also changes
 Change in DEMAND happens when the demand for a product at a particular time increases or
decreases even tho the price is constant.
 Change in QUANTITY SUPPLIED happens when the amount of the commodity that a supplier is
willing to sell the changes due to the change in the price of the commodity itself.
 Change in SUPPLY occurs when supply increases or decreases even though the price is constant.

FACTORS AFFECTING DEMAND


1. Change in income
a) Demand for goods increases as the consumer’s income increases. More income means
greater capacity to meet economic wants.
2. Population
a) More people means more goods and services
3. Advertisement
a) The most influential marketing tool that uses extensively the power of media
4. Change in the price of substitute products
a) Substitute products
i. Goods that are alternatives for each other
b) Competing products
i. Are close substitute, while non-competing products that have the similar function are
less subtitute
5. Change in the price of Complimentary products
a) Products that are used together (car and oil)\
6. Speculation
a) a SURGE in the demand for certain goods sometimes occurs when consumers anticipate
that the price will suddenly increase or the supply will run out.
SUPPLY- the QUANTITY OF A COMMODITY that a seller is willing to offer for a sale at a given price
and time.

THE LAW OF SUPPLY- explains the typical behavior of SELLERS in the market.

 SUPPLY SCHEDULE- is a table that shows the quantity supplied at a various price at a given time.
 SUPPLY CURVE- graphical representation of supply schedule.

Change in SUPPLY occurs when supply increases or decreases even though the price is constant.

FACTORS AFFECTING SUPPLY


1. Number of production /sellers
a) More producers or sellers, more supply
2. Productivity of Inputs
a) Firms must employ the most efficient means if production to maximize the use of inputs.
3. Cost of inputs.
a) Cost refers to the expenditures incurred in the production of goods and services

PRODUCTIVITY is measured by comparing the numbers of the outputs produced with the inputs used
in production.

1. PRICE is the market value of a commodity


a) It is FAIR, FREE, ELASTIC, COST-FREE, and EFFICIENT

CONSEQUENCES OF:
Market surplus- DEFLATION
Market Shortage- INFLATION
Elasticity- measures the degree of responsiveness of quantity demanded or supplied to a change in
the price
PERFECLTY ELASTIC- INFINITY
ELASTIC- GREATER THAN ONE BUT LESS THAN INFINITY
PERFECTLY INELASTIC- ZERO
INELASTIC- GREATER THAN 0 BUT LESS THAN 1
UNITARY- ONE

Q2 - Q1
Q1
P 2 - P1
P1

You might also like