Name __________________________________________ Course & Year_________ SCORE______

Lecture Time__________________ Date Performed________

Topic: Demand and Supply

1. Define the following concepts. (Although all of the definitions can be found in the Lecture Handout,
you may use other references which you may find more understandable for you. If you did, please
cite the reference material and the author of the book including the chapter and the page where
you got your answer.

Concept Definition/Statement Concept Definition/Statement

Demand Supply

Law of Law of Supply

Demand

Change in Change in
demand supply

Change in Change in
quantity quantity
demanded supplied

2. Determinant is a factor which decisively affects the nature or outcome of something. Given the
following determinants of demand and supply, under what situation will there be an increase or
decrease in demand? increase or decrease in supply?

Determinants of Determinants of
Demand Supply
Number of Number of
buyers/consumers sellers/producers

Tastes and preferences Prices of resources

Money Income: Technology

Normal good

Inferior good
Prices of related goods: Prices of other
Substitutes goods

Complements

Expectation on future Expectation on

prices and income future prices
 Taxes and subsidies

3. Assume that a consumer (the one who purchases or buys a good or a service) named Mr. (your last name)
owns a car that he uses regularly for the needs (necessity) and wants (luxury) of his family. Choose one
among the determinants of demand mentioned above and in your own words, discuss how this factor
affected Mr. ________ for gasoline.

4. Consider the perception of a fuel (gasoline) company like Shell, Petron or Caltex. Choose one determinant
of supply mentioned above and in your own words, discuss how this factor will affect the company’s supply
for gasoline.

Note: you may click the following link for your reference.
https://www.youtube.com/watch?v=LwLh6ax0zTE&list=PL6B2DBE4C2FC8F845&index=5
https://www.youtube.com/watch?v=ewPNugIqCUM&list=PL6B2DBE4C2FC8F845&index=6