Supply
It refers to the quantity of a product a producer is willing to sell at a certain price.
Supply
This symbol represents quantity supplied.
Qs?
This branch of economics studies the relationship between households and firms.
Microeconomics
This symbol represents quantity demanded in a demand function.
Qd
It occurs when quantity demanded equals quantity supplied.
Market Equilibrium
Natural disasters that affect production are examples of this supply factor.
Mother Nature (or Natural Factors)
This is the elasticity of a product on which the PES = -3.9
Elastic
It refers to the quantity of a product a consumer is willing and able to buy at a given price.
Demand
This is the elasticity of a product in which the PED = 0
Perfectly Inelastic
This term refers to the agreed-upon price between buyers and sellers.
Equilibrium Price
When the government gives financial assistance to producers, what factor of Supply is this?
Subsidy
The price of fish balls increased from ₱1 to ₱1.50 per piece. Vendors increased supply from 3,000 to 3,600 pieces per day.
PES = 0.46, Inelastic Supply
Replacing Margarine for Butter are examples of goods related through this demand factor.
Substitute Goods / Inferior Goods
The price of rice increased from ₱45 to ₱50 per kilo. The quantity demanded decreased from 2,000 kilos to 1,900 kilos.
PED = 0.49, Inelastic
When demand is greater than supply, this market condition occurs
Shortage
As the season changes the number of sellers of particular product decreases what supply factor is this?
Number of Sellers?
The price of handmade bags increased from ₱900 to ₱1,200. Artisans increased production from 100 to 160 bags.
PES = 1.62, Elastic Supply
A product that consumers buy more of when their income increases is classified as this type of good.
Normal Good
The price of ice cream increased from ₱30 to ₱40 per cone. Sales fell from 300 cones to 210 cones.
PED = 1.23, Elastic Demand
When supply exceeds demand, this market condition occurs.
Surplus
What is the Law of Supply?
This law states that as price increases, quantity supplied increases as well, assuming other factors are constant.
The price of coffee beans rose from ₱180 to ₱220 per kilo. The quantity supplied increased from 900 to 1,000 kilos.
PES = 0.53, Inelastic Supply
What is the Law of Demand
This law states that as price increases, quantity demanded decreases, assuming other factors are constant.
The ticket price for a school field trip increased from ₱500 to ₱600. The number of students joining decreased from 120 to 96.
PED = 1.22, Elastic Demand
A government-imposed maximum price is called this type of price control.
Price Ceiling