4. The horizontal 12.

When each additional

SECOND (2nd) summation of all unit of a product gives
CHECKPOINT EXAM individual demands for you less utility it is
IN ECONOMICS 9 a particular good or known as _____.
(AP9-R-RD) service:
- Law of Diminishing
Marginal Utility
SCOPE: - Market Demand
Modules 5-6
5. Refers to the various 13. Goods where demand
POINTERS:
quantities of a good or increases as income
Module 5: The Analysis of service that producers increases.
Demand are willing to sell at all
possible market prices: - Normal goods
I. DEMAND
i. Definition - Supply 14. Goods where demand
ii. Demand Schedule, increases as income
Curve and Function 6. Because P and Qs are decreases.
iii. Law of demand directly related, the
iv. Changes in Demand supply curve graphs as - Inferior goods
(Determinants of an ______.
Demand)
v. Market Demand 15. A lower price increases
- Upward sloping curve
vi. Linear Demand the purchasing power
Function of money income,
7. Because P and Qd are
enabling the consumer
Module 6: The Analysis of inversely related, the
to buy more at a lower
Supply demand curve graphs as
price (or less at a higher
______.
price).
II. SUPPLY
- Downward sloping
i. Definition - Income effect
curve
ii. Supply Schedule, Curve
and Function 16. A lower price gives an
iii. Law of Supply 8. On a demand curve, the
incentive to substitute
iv. Changes in Supply x-axis is:
the lower-priced good
(Determinants of for the now relatively
Supply) - The Qd for higher-priced goods.
v. Market Supply
commodities
vi. Linear Supply Function
- Substitution effect
BEGIN: 9. Law of supply states:
17. Advertising one’s
1. Approaches the study - As price rises
wealth:
of economics from the …quantity supplied
viewpoint of individual rises, As price
- Snob-appeal
or firms. falls…quantity
supplied falls
18. Two goods for which
- Microeconomics an increase in the price
10. Law of demand states:
of one leads to an
2. The desire, willingness, increase in the demand
and ability to buy a - As price rises
for the other.
good or service …quantity demand
falls, As price
- Substitute goods
falls…quantity
- Demand demanded rises
19. Two goods for which
3. Shows the amount an increase in the price
consumers are willing 11. Other things equal and of one leads to a
and able to purchase at holding all the other decrease in the demand
each price level for a variables constant: for the other.
specified period of
time. - Ceteris paribus (Latin - Complement goods
word)
- Demand schedule
 20. Law of Demand
Function:
- Qd = f(P, T, I, R, N,
E) or Qd = f (P)
- Qd = a – b (p)
21. Law of Supply
Function:
- Qs = f(P, R, T, TS, N,
O, E) or Qs= = f (P)
- Qs= c +dP
22. Refers to movements
along a given supply
curve due to a change
in price:
Changes in Quantity
Supplied
B→A
− increase in Qs
− increase in P
A→B
− decrease in Qs
− decrease in P
23. The more buyers the
greater the demand:
- Number of buyers
24. If consumers expect the
future price of a
product to be higher,
they increase their
current demand for the
product and it goes the
other way around.
- expect P↑ - current
demand ↑
- expect P↓ - current
demand ↓
25. Taxes and Subsidies:
- Tax – expense -
production cost ↑-
supply ↓
- Subsidies – grants - 32. If the price of product
production cost ↓ A declines, the demand
supply ↑ curve for the
complementary goods
B will:
26. Prices of other goods:
- Shift to the right
- price of other good ↑ -
supply of current 33. When the price of a
good ↓ substitute of
- price of other good ↓ - commodity Z rises, the
supply of current demand for Z
good ↑
- Rises
27. Producer Expectation:
34. The demand curve
illustrates the inverse
- expect future price ↑ -
(negative) relationship
current supply ↓
between price and
- expect future price ↓ -
quantity.
current supply ↑
28. Resource prices: - True
35. The downward slope
- price of labor ↑
indicates a lower
- price of raw
quantity (horizontal
materials↑
axis) at a higher price
- production cost ↑ -
(vertical axis), and a
supply ↓
higher quantity at a
lower price, reflecting
29. Technology:
the law of demand.
produce more, better, faster
products at lower cost - True
- efficiency ↑ - 36. Common sense, people
production cost ↓ usually do buy more of
supply ↑ a product at a low price
than they do at a high
price.
30. Using the figure below,
a decrease in supply is
- True
depicted by a:
37. A movement downward
and to the left along a
given demand curve is
called a decrease in
demand.
- True
38. A decrease in income
- Shift from S2 to S1 will shift the demand
curve for an inferior
31. When an individual’s good to the right
income falls, while (increase in demand).
everything else remains
the same, his demand - True
for a normal good:
- Falls
39. Supply curve shows
how much sellers will
supply at different
prices.

- True

40. Demand curve is

graphical illustration of
the demand schedule,
with the price measured
on the vertical axis (Y)
and the quantity
demanded measured on
the horizontal axis (X).

- True

“Life without this sort of examination is not worth living”

- Socrates

So help me Lord…

Prepared:

MR. ROGER B. ONELAN JR. LPT

Teacher, Economics