ECONOMICS (OTHERS)

Question	Answer
Formula For Marginal Utility	TU2-TU1 MU=___________ C2-C1
Ceteris Paribus	All other things be taken equal
Shift	left / right
Movement	Up / Down
Factors that Shift Demand	T- Taste and Preferences I- Income N- Number of consumers D- Demographics E- Expectations of consumers R- Related goods price
Tastes and Preferences	Seasons, Endorsement,
Income	When 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
Number of Consumers	Population growth or a shift in age structure can also affect the demand for goods
Demographics	(related to Tastes and Preferences) Age, Gender, Ethnicity, Education
Expectations of Consumers	Demand of a product is often influenced by consumer's expectations of what will happen in the future News, Rumors
Related Goods Price	Demand shifts can be the result of the changing prices of related goods, which may be either substitutes or complements
Factors that Change Supply	S- 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
Formula for Price Elasticity of Supply	QSUPPLY(NEW) - QSUPPLY(OLD) / QS(OLD) ______________________________ P(NEW) - P(OLD) / P(OLD)
Formula for Price Elasticity of Demand	QD(NEW) - QD(OLD) / QD(OLD) ______________________________ P(NEW) - P(OLD) / P(OLD)
Demand vs. Quantity Demanded	Demand- Demand curve Qty. Demanded- one particular point on curves
Example Situation of: Tastes and Preferences	A famous singer endorses a product for a particular brand of clothing. The demand for clothes from that particular brand of clothing would increase
Example Situation of: Income	Filipinos 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.
Example Situation of: Number of Consumers	An increased number of fishermen living in Manila increased. The demand for fishing supplies will increase
Example Situation of: Demographics	There is an increase in the rate of the number of youths in a city. The demand for facial wash will increase in that city
Example Situation of: Size of Market	The number of suppliers for Pork meat increased in a city. The supply for Pork meat will increase in that city
Example Situation of: Technology	HP factory in China has experienced a technical difficulty in producing printers. The supply of printers will decrease in China.
Example Situation of: Other prices of Related Goods	The price of Hot Dogs increased. The supply of hot dog buns will increase
Example Situation of: Resource Prices	Hershey'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.
Example Situation of: Expectations of Producers	E-learning is beginning to be adapted by more schools in Manila. Producers of tablets or laptops will expect to increase their supply.
Example Situation of: Subsidies, tax and Reg. of government	The 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
Apply Economics in your Daily Life	Buying Goods which give the highest level of satisfaction for price. Budget Constraints- we have unlimited wants but limited income
Why 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

Next up

Description

Resource summary

Similar

	Created by Prezil Ong almost 9 years ago