Basic Concepts of Demand and Supply (Retrieval of Learning)

Which of the following defines demand in economics?

• The desire to own goods and services.

• The willingness of a consumer to buy goods and services

• The total amount of goods bought in the market.

• The total amount of money a consumer spends on a particular good or service.

Which of the following best shows a quantity demanded?

• Consumer Z spent Php 160 for product X in the market.

• Consumer D is willing to pay for product Y in the market.

• Consumer A is able to buy 6 pcs. of product X at a price of Php 160

The Law of Demand states that, assuming other non-price factors remain unchanged such that only price affects the demand (ceteris paribus), as the price of a good or service rises, the quantity demanded _______.

• Increases

• Decreases

• Remain constant

• Shifts

A change of the following factors causes a movement or a change of the quantity demanded for a product other than price itself, EXCEPT _______.

• Consumer preference and taste

• Season

• Price expectations

• Number of buyers in the market

If consumer (household) income increases, what will happen to their ability to purchase normal goods such as groceries?

• Increase demand for normal goods

• Decrease demand for normal goods

Milk and cereal are often consumed together. These goods are an example of:

• Normal goods

• Substitute goods

• Complementary goods

• Inferior goods

Consumers hear a credible report that the price of gasoline will double tomorrow. What effect will this have on the current demand for gasoline today?

• The demand for gasoline will increase.

• The demand for gasoline will decrease.

Suppliers hear a credible report that the price of gasoline will double tomorrow. What effect will this have on the current supply for gasoline today?

• The supply for gasoline will increase.

• The supply for gasoline will decrease.

Which of the following defines supply?

• The ability of the consumer to pay for goods and services.

• The ability of the seller to pay for goods and services.

• The willingness and ability of the consumer to sell goods and services.

• The willingness and ability of the seller to supply goods and services.

The Law of Supply states that, assuming other non-price factors remain unchanged such that only price affects the supply (ceteris paribus), as the price of a good or service rises, the _________.

• Quantity supplied increases

• Quantity supplied decreases