Arris Cristever Evarola BSCOE IV Define the FF. 1.

. MARKET - A market is any place where the sellers of a particular good or service can meet with the buyers of that goods and service where there is a potential for a transaction to take place. 2. MARKET DEMAND - The aggregate of the demands of all potential customers (market participants) for a specific product over a specific period in a specific market.

3. LAW OF DEMAND - A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa. 4. DEMAND SCHEDULE - In economics, the demand schedule is a table of the quantity demanded of a good at different price levels. Thus, given the price level, it is easy to determine the expected quantity demanded.

5. DEMAND CURVE - In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at that given price. 6. MARKET SUPPLY - The total supply of every seller willing and able to sell a good. 7. SUPPLY SCHEDULE - A table which contains values for the price of a good and the quantity that would be supplied at that price. If the data from the table is charted, it is known as a supply curve. 8. SUPPLY CURVE - A graph showing the hypothetical supply of a product or service that would be available at different price points. The supply curve usually slopes upward, since higher prices give producers an incentive to supply more in the hope of making greater revenue. In the short run the price-supply tradeoff is greater than in thelong run. 9. MARKET EQUILIBRIUM - A situation in which the supply of an item is exactly equal to its demand. Since there is neither surplus nor shortage in the market, price tends to remain stable in this situation. 10. DEMAD AND SUPPLY SCHEDULE - is an economic model of price determination in a market. ANSWER THE FF. QUESTION 1. WHAT IS MARKET? HOW DOES IT FUNCTION? You will need consumers and producers and a land or a place for them to trade, in the modern world money and products are used to be traded.

2. HOW MANY THE LAW OF DEMAND BE DESCRIBED the law of demand is an economic law, which states that consumers buy more of a good when its price is lower and less when its price is higher (ceteris paribus). 3. WHAT DOES THE DEMAND CURVE SHOW The level of demand for a product or service. When coupled with a supply curve you find the theoretical market clearing price, which is the maximum you can charge to sell all units at the highest price at the current level of demand. 4. WHAT ARE THE NONPRICE DETERMINANTS OF DEMAND The following list enumerates the non-price determinants of demand. These factors are important, because they can change the number of units sold of products and services, irrespective of their prices. The determinants are: Branding. Sellers can use advertising, product differentiation, customer service, and so forth to create such strong brand images that buyers have a strong preference for their goods. Market size. If the market is expanding rapidly, customers may be compelled to purchase based on other factors than price, simply because the supply of goods is not keeping up with demand. Demographics. A change in the proportions of the population in different age ranges can alter demand in favor of those groups increasing in size (and vice versa). Thus, an aging population will increase the demand for arthritis drugs. Seasonality. The need for goods varies by time of year; thus, there is a strong demand for lawn mowers in the Spring, but not in the Fall. Available income. If the amount of available buyer income changes, it alters their propensity to purchase. Thus, if there is an economic boom, someone is more likely to buy, irrespective of price. Complementary goods. If there is a price change in a complementary item, it can impact the demand for a product. Thus, a change in the price of popcorn in a movie theatre could impact the demand for movies. Future expectations. If buyers believe that the market will change in the future, such as may happen with an anticipated constriction of supplies, this may alter their purchasing behavior now. Thus, an expected constriction in the supply of rubber might increase the demand for tires now. These determinants will alter the demand for goods and services, but only within certain price ranges. For example, if non-price determinants are driving increased demand, but prices are very high, it is likely that buyers will be driven to look at substitute products.

5. WHAT DOES A SHIFT TO THE LEFT OF THE DEMAND CURVE SIGNIFY? A shift in the demand curve is when people stop wanting something. They stop buying it. So, a shift in the demand curve. It could be the opposite of course 6. WHAT IS A SUPPLY SCHEDULE? A method used to show the different amounts of a certainproduct or item that a company would need to supplybased on different price points. 7. WHAT ARE THE NONPRICE DETERMINANTS OF SUPPLY

8. WHAT IS THE EFFECT OF A TAX INCREASE IN THE ORIGINAL SUPPLY CURVE? Tax authorities usually require either the buyer or the seller to be legally responsible for payment of the tax. Tax incidence is the way in which the burden of a tax is shared among the market participants (who bears the cost?). Taxes will typically constitute a greater burden for whichever party has a more inelastic curve e.g., if supply is inelastic and demand is elastic, the burden will be greater on the producers. 9. WHAT IS THE EQUILIBRIUM PRICE? The market price at which the supply of an item equals the quantity demanded. 10. WHAT HAPPEN WHEN THE PRICE SET BELOW THE EQUILIBRIUM PRICE? When the market price of a good or service rises above equilibrium on its own, the number of buyers exhibiting demand for it is reduced. The only thing left for the maker of such a good or service to do is to drop the price to restore the level of demand necessary to make an optimal profit. This sounds contrary to simple arithmetic, but the fact is that the equilibrium is the price at which consumers get the best deal and suppliers earn the most profit.