Fichas
ECONOMICS (OTHERS)
Fichas del conjunto (27)
- 1Formula For Marginal UtilityTU2-TU1
MU=___________
C2-C1 - 2Ceteris ParibusAll other things be taken equal
- 3Shiftleft / right
- 4MovementUp / Down
- 5Factors that Shift DemandT- Taste and Preferences
I- Income
N- Number of consumers
D- Demographics
E- Expectations of consumers
R- Related goods price - 6Tastes and PreferencesSeasons, Endorsement,
- 7IncomeWhen your income increases and you consume MORE of a good, the good is called normal.
It is called inferior when the consumer increases income and demand for this good falls - 8Number of ConsumersPopulation growth or a shift in age structure can also affect the demand for goods
- 9Demographics(related to Tastes and Preferences)
Age, Gender, Ethnicity, Education - 10Expectations of ConsumersDemand of a product is often influenced by consumer's expectations of what will happen in the future
News, Rumors - 11Related Goods PriceDemand shifts can be the result of the changing prices of related goods, which may be either substitutes or complements
- 12Factors that Change SupplyS- size of the market (# of sellers)
T- Technology
O- Other prices of related goods
R- Resource prices
E- Expectations of producers
S- Subsidies, taxes and reg. of the government - 13Formula for Price Elasticity of SupplyQSUPPLY(NEW) - QSUPPLY(OLD) / QS(OLD)
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P(NEW) - P(OLD) / P(OLD) - 14Formula for Price Elasticity of DemandQD(NEW) - QD(OLD) / QD(OLD)
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P(NEW) - P(OLD) / P(OLD) - 15Demand vs. Quantity DemandedDemand- Demand curve
Qty. Demanded- one particular point on curves - 16Example Situation of: Tastes and PreferencesA famous singer endorses a product for a particular brand of clothing. The demand for clothes from that particular brand of clothing would increase
- 17Example Situation of: IncomeFilipinos from Cebu who are working in Manila experience an increase in income and now uses airplane as a mode of transportation from Manila to Cebu. The demand for Ro-ro or ferry tickets will decrease.
- 18Example Situation of: Number of ConsumersAn increased number of fishermen living in Manila increased. The demand for fishing supplies will increase
- 19Example Situation of: DemographicsThere is an increase in the rate of the number of youths in a city. The demand for facial wash will increase in that city
- 20Example Situation of: Size of MarketThe number of suppliers for Pork meat increased in a city. The supply for Pork meat will increase in that city
- 21Example Situation of: TechnologyHP factory in China has experienced a technical difficulty in producing printers. The supply of printers will decrease in China.
- 22Example Situation of: Other prices of Related GoodsThe price of Hot Dogs increased. The supply of hot dog buns will increase
- 23Example Situation of: Resource PricesHershey's increased their cost of production of chocolate bars due to an increase in the wages of their employees. The supply of chocolate bars will decrease.
- 24Example Situation of: Expectations of ProducersE-learning is beginning to be adapted by more schools in Manila. Producers of tablets or laptops will expect to increase their supply.
- 25Example Situation of: Subsidies, tax and Reg. of governmentThe government has seen the need of more First Aid kits in a country and gave Band-Aid (c) a gov't subsidy. The supply of First-Aid Kits will increase in that country
- 26Apply Economics in your Daily LifeBuying Goods which give the highest level of satisfaction for price.
Budget Constraints- we have unlimited wants but limited income - 27Why is there No Free Parking?The demand for parking will increase and cause congestion and people won't commute anymore and env will be affected