2745514
Description
Flashcards by Prezil Ong, updated more than 1 year ago
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Created by Prezil Ong
over 9 years ago
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| Question | Answer |
| Formula For Marginal Utility | TU2-TU1 MU=___________ C2-C1 |
| Ceteris Paribus | All other things be taken equal |
| Shift | left / right |
| Movement | Up / Down |
| Factors that Shift Demand | T- Taste and Preferences I- Income N- Number of consumers D- Demographics E- Expectations of consumers R- Related goods price |
| Tastes and Preferences | Seasons, Endorsement, |
| Income | When your income increases and you consume MORE of a good, the good is called normal. It is called inferior when the consumer increases income and demand for this good falls |
| Number of Consumers | Population growth or a shift in age structure can also affect the demand for goods |
| Demographics | (related to Tastes and Preferences) Age, Gender, Ethnicity, Education |
| Expectations of Consumers | Demand of a product is often influenced by consumer's expectations of what will happen in the future News, Rumors |
| Related Goods Price | Demand shifts can be the result of the changing prices of related goods, which may be either substitutes or complements |
| Factors that Change Supply | S- size of the market (# of sellers) T- Technology O- Other prices of related goods R- Resource prices E- Expectations of producers S- Subsidies, taxes and reg. of the government |
| Formula for Price Elasticity of Supply | QSUPPLY(NEW) - QSUPPLY(OLD) / QS(OLD) ______________________________ P(NEW) - P(OLD) / P(OLD) |
| Formula for Price Elasticity of Demand | QD(NEW) - QD(OLD) / QD(OLD) ______________________________ P(NEW) - P(OLD) / P(OLD) |
| Demand vs. Quantity Demanded | Demand- Demand curve Qty. Demanded- one particular point on curves |
| Example Situation of: Tastes and Preferences | A famous singer endorses a product for a particular brand of clothing. The demand for clothes from that particular brand of clothing would increase |
| Example Situation of: Income | Filipinos from Cebu who are working in Manila experience an increase in income and now uses airplane as a mode of transportation from Manila to Cebu. The demand for Ro-ro or ferry tickets will decrease. |
| Example Situation of: Number of Consumers | An increased number of fishermen living in Manila increased. The demand for fishing supplies will increase |
| Example Situation of: Demographics | There is an increase in the rate of the number of youths in a city. The demand for facial wash will increase in that city |
| Example Situation of: Size of Market | The number of suppliers for Pork meat increased in a city. The supply for Pork meat will increase in that city |
| Example Situation of: Technology | HP factory in China has experienced a technical difficulty in producing printers. The supply of printers will decrease in China. |
| Example Situation of: Other prices of Related Goods | The price of Hot Dogs increased. The supply of hot dog buns will increase |
| Example Situation of: Resource Prices | Hershey's increased their cost of production of chocolate bars due to an increase in the wages of their employees. The supply of chocolate bars will decrease. |
| Example Situation of: Expectations of Producers | E-learning is beginning to be adapted by more schools in Manila. Producers of tablets or laptops will expect to increase their supply. |
| Example Situation of: Subsidies, tax and Reg. of government | The government has seen the need of more First Aid kits in a country and gave Band-Aid (c) a gov't subsidy. The supply of First-Aid Kits will increase in that country |
| Apply Economics in your Daily Life | Buying Goods which give the highest level of satisfaction for price. Budget Constraints- we have unlimited wants but limited income |
| Why is there No Free Parking? | The demand for parking will increase and cause congestion and people won't commute anymore and env will be affected |
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