Economics Evaluation Of Chapter 3

Page 82-85

A. Multiple Choice

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B. Essays

1. Explain the definition of demand.
2. Explain the factors influencing individual demand and supply.
3. How does production cost affect the quantity supplied?
4. Explain the law of demand. When does the law apply?
5. Explain the meanings of shifting in demand curve and movement along the demand curve.
6. Explain the impact of subtitute goods to demand elasticity.
7. How does time frame affect on demand?
8. Explain the meaning of market equilibrium price.
9. Explain how the change in market equilibrium happens.
10. Explain the factors infuencing the elasticity of demand and supply.
Answer:

1. A demand schedule is a table represents a relationship between the price of goods and the quantity demanded, while a demand curve is a grap depiciting the relationship between the price and the quantity demanded.
2.a) Factors influencing Demand:
- Price of Goods or Services
- Individual Income
- Price of related goods/services
- Personal Tastes
- Consumer's expectation
b) Factors influencing Supply
- Price
- Resources
- Technology
- Producer's expectation
3.
4. The law of demand states that the demand quantity of a commodity and its price are
inversely related,if other things remain constant (ceteris paribus)