Analogical Information

Directions: Provide the information to complete the analogy between the concepts of supply and demand. (25 points)
Category Supply Demand

The players involved in order to effect (1) Firm as Seller Household as Consumer
market interaction
Theory which supports their Production/Cost Theory (2)Consumer Theory
conceptual framework

The direction of the line in the price- Upward Sloping (3)Downward Sloping
quantity relationship

The slope (relationship) between price (4)Direct or Positive Inverse or Indirect

and quantity (rise over
run/slope/elasticity)
The law which supports their concept as (5) Law of Supply (6)Law of Demand
stated briefly

The goals of which their concepts served (7) Production cost utility= (8)maximize utility subject to
as basis for its theoretical foundation maximize profit by minimizing budget constraints
cost

The ultimate concern of the following actors (9) Profit (10)Price

The curve that represents maximum (11) Iso-quant Indifference Curve

levels (combinations)

The line that represents the concept’s Iso-cost Line (12)Budget Line
capability to purchase or finance the said
combinations

The underlying principle on marginal effects Marginal Rate of (13) Principle of Diminishing
that implicate the reaction of factors Technical Substitution Marginal Utility

At least six (6) factors that would affect 14. No. of sellers
the concept to shift to a higher or lower 15. Technology
mode 16. Optimising factor inputs
17. Weather conditions
18. Govt. Policies
19.Economic Expectations
20. Preferences
21. Change in Income
22. Change in Populations
23. Future Price expectations
24.
25.
 Perfect Competition Monopoly Monopolistic Competition Oligopoly

1 Large number of sellers 1 One seller 1 Many small firms 1.Few large firms

2 Homogeneous 2 Unique 2 Differentiated 2 Differentiated

3 no barriers 3 High barriers 3 low barriers 3 High barriers

4 Price takers 4 Price Makers 4 Price setters 4 Price coordinators

5 Franchising 5 Meralco 5 Detergents 5 Oil Industry