ECONOMICS

Onego, Joselito R. October 11, 2021

Mr. Arman Masongsong BSBA-1l

Second Assignment
Take these assignment for your next topics:

1. What is price theory?

In my own opinion, the price theory is an economic theory that states that
the price for any specific good or service is based in the relationship supply
and demand.
2. What is economic theory?
Economic theory is a formal explanation of the relationship between
economic condition or variables. This economic theory is broad concept for
explaining and understanding the movement of goods in a market.
3. What do you mean by microeconomics?
Microeconomics is part of the social science that studies the implications
of incentives and decisions, specifically those affect the utilization and
distribution of resources.
4. What are the characteristic of microeconomics?
Microeconomics is also an analytical branch of economics that looks at
the behavior spending patterns and allocation of money to goods and services
by the consumers, companies and suppliers.
5. What is market?
Market refers to the group of consumers or organization that is interested
in a product.
a. Supermarket
A market selling especially foods and merchandising.
b. Stock market
Stock market is a similar designated market for trading various kinds of
securities in an controlled and, secure and managed environment.
c. Foreign exchange market
The foreign exchange market is a form of exchange for the global
decentralized trading of international currencies.
6. What is demand?
Demand is the number of goods that the customers want and ready to buy
at several prices.
7. What is the law of demand?
The amount demanded of a good increases with a decrease in price of
the good and vice versa.
8. Why demand change?
A change in demand represents the shift of consumer desire to purchase
a particular services of goods.
9. What is supply?
Supply is the quantity or amount needed or available.
10. What is the law of supply?
The law of supply states that a higher price leads to a higher quantity
supplied and that a lower price leads to a lower quantity supplied.
11. Why supply changes?
A change of supply can occur as a result of technologies, such as more
efficient or less expensive production process, or a change in the number of
competitors in the market.
12. How is price determined by demand and supply?
The price will increase if there is a shortage in the supply and increase in
demand.
13. What causes price to change?
Price change maybe because of the high demand and low supply.
14. What happen when price is not allowed to change with market force?
When the price is not allowed to change, the market can’t reach
equilibrium. Equilibrium means an economic forces are in perfect balanced.