APP ECON

• Market

  An interaction between buyers and sellers of trading or exchange where consumers buy and sellers sell
• Types of markets

  • Goods market
  • Labor market
  • Financial market
• Demand


  The quantity of goods that consumers are willing and able to buy at various prices during a given period of time
• Demand schedule


  A table showing the quantity demanded of a good or service at different price levels
• Demand function


  A mathematical equation expressing the demand of a product or service as a function of its price
• Change in QD


  New QD minus Old QD
• Change in Price

  New Price minus Old Price
• Demand Curve


  A graphical illustration of the demand schedule, with Price on the vertical axis (Y) and Quantity Demanded on the horizontal axis (X). It slopes downward indicating the negative relationship between price and quantity demanded
• Hypothetical Demand Schedule

  • Jasoncutie for Rose: Price (₱) Quantity Demanded (QD) 20 50, 30 40, 40 30, 50 20, 60 10
• Law of Demand

  There is an inverse relationship between the prices of a good and the quantity demanded. As price increases, quantity demanded decreases and vice versa
• Non-price Determinants of Demand

  • Income, taste, expectations, prices of related goods, population
• Shift of the demand curve

  A change in the entire demand for a product caused by non-price determinants
• Supply


  The quantity of goods that sellers are willing and able to offer for sale at various prices
• Non-price determinants


  Can cause an upward or downward change in the entire demand for the product, referred to as a shift of the demand curve
• Demand function

  D= f(Y,T,E,PR,P) - Demand for a good is a function of Income (Y), Taste (T), Expectations (E), Price of Related Goods (PR), and Population (P)
• Supply


  The quantity of goods that sellers are willing and able to offer for sale at various prices during a given period of time
• Supply schedule

  A table that shows the quantity supplied at each price
• Supply function


  A mathematical equation expressing the quantity of a commodity supplied as a function of the commodity's price, e.g., Qs= a+b(P) where a is the x-intercept, b is the slope (Change in QS/Change in Price), and P is the price
• Supply Curve

  A graphical illustration of the demand schedule, with Price measured on the vertical axis (Y) and Quantity Supplied measured on the horizontal axis (X)
• Demand curve slopes upward

  Indicating the positive relationship between price and quantity supplied
• Change in QS

  New QS - Old QS
• Change in Price

  New Price - Old Price
• Hypothetical Supply Schedule of Chocoloko Paktory for Chocolate Bar

  • Price (₱): 250, 200, 150, 100, 50
  • Quantity Supplied (QS) (in pieces): 100, 80, 60, 40, 20
• Sunday Adelaja: '“Those who don’t want to supply what life demands suffer consequences.”'
• JCI: '“Buti pa ang Demand may ka-partner na Supply, eh ikaw? HAHAHAHA eme”'