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Macroeconomics
Week 4-6 September 28-October 16, 2020

Name: JUN MARK B. YABO Year Level: BSED-II

Answer the following questions.
1. Define and discuss demand, demand schedule, and demand curve as well as supply,
supply schedule and supply curve.
: Demand refers to how much of a product consumers are willing to purchase, at different
price points, during a certain time period.We all have limited resources, and we have to
decide what we're willing and able to buy.
In economics, a demand schedule is a table that shows the quantity demanded of a good or
service at different price levels. A demand schedule can be graphed as a continuous
demand curve on a chart where the Y-axis represents price and the X-axis represents
quantity.
The demand curve is a graphical representation of the relationship between the price of a
good or service and the quantity demanded for a given period of time. In a typical
representation, the price will appear on the left vertical axis, the quantity demanded on the
horizontal axis.
Supply is a fundamental economic concept that describes the total amount of a specific good
or service that is available to consumers. Supply can relate to the amount available at a
specific price or the amount available across a range of prices if displayed on a graph.
A supply schedule is a table that shows the quantity supplied at different prices in the
market. A supply curve shows the relationship between quantity supplied and price on a
graph. The law of supply says that a higher price typically leads to a higher quantity
supplied.

2. Analyze the market dynamics using the law of demand and law of supply.
: The law of demand says that at higher prices, buyers will demand less of an economic good.
The law of supply says that at higher prices, sellers will supply more of an economic good. These
two laws interact to determine the actual market prices and volume of goods that are traded on
a market.
3. Discuss aggregate demand and its determinants, as well as aggregate supply and its
determinants.
:A change in any of these determinants causes a shift of the aggregate demand curve. The
determinants work through the four aggregate expenditure categories--consumption
expenditures, investment expenditures, government purchases, and net exports.

Aggregate supply includes consumer, capital, public, and traded goods and is usually
represented in economics by a supply curve on a graph. A few of the determinants are size of
the labor force, input prices, technology, productivity, government regulations, business taxes
and subsidies, and capital.

4. Compute the coefficient of elasticity of demand and supply.

The price elasticity of demand is the percentage change in the quantity demanded of a good or
service divided by the percentage change in the price. The price elasticity of supply is the
percentage change in quantity supplied divided by the percentage change in price.