CHAPTER 2 EXERCISES

Name: Delantar, Desiree Y. Score: __________________

Year/Course/Section: 1-A BSE Schedule: Thursday 7:00AM-10:00AM

I. Enumeration: State what is being asked.

1. Give at least Five Factors that Influence Demand.

1) Population

2) Income

3) Taste and Preference

4) Price Expectation

5) Price of Related Goods/Products

2. Give at least Five Factors that Influence Supply.

1) Subsidies and Taxes

2) Technology

3) Resource Cost/Price

4) Number of Sellers/Producers

5) Expectations

3. State the Law of Demand.

Law of Demand states that as the price of the commodity increases, all other things remain constant
(ceteris paribus), quantity demanded decreases.

4. State the Law of Supply.

Law of Supply states that “all other things remaining constant (Ceteris paribus), price and quantity
supplied are directly proportional.” There is a positive relationship between price and quantity supplied.
ANALYSIS:
Demand and Supply of Hamburger/Week

PRICE QTY. DEMAND QTY. SUPPLY

10 500 100
12 400 200
18 300 300
20 200 400
22 100 500

A shortage exist at price 10

A surplus exist at price 22
The equilibrium price is 18
The equilibrium quantity is 300
If the price is P20.00 there would be SURPLUS of hamburger.
As price changes from P20.00 to P22.00 there has been change in Price D 22 QD 100 Price S 22 QS 500