Test I. Identification __________________15.

It is a law that indicates that as

price increases, the consumers are not willing to buy more

__________________1. These are the things that we must
decreasing quantity demanded or vice versa
have for us to live like food, clothing or shelter.

__________________16. These are help extended by the

__________________2. The things that will give us the
government to motivate business firms to do business
state of ease and contentment

__________________17. A law indicating that as the price

__________________3. There are times that this would
increases, the producers are willing to sell more, increasing
make us suffer more.
quantity supply or vice versa
__________________4. These are the result of human’s
__________________18. A point where the sellers and the
unsatisfied nature always seeking for more, seeking for
consumers agree to pay the price of the commodity
greater satisfaction

__________________19. It is the price where the buyers

__________________5. It is a place where all goods and
are willing to buy at the price of the seller’s willingness to
services are bought. A place where the buyer and seller
sell
met

__________________20. It means a change in quantity

__________________6. It is the one who demands
demanded of product in every price, a shift of demand
__________________7. It is the one who supplies
curve to the left or right

__________________8. It also plays an important role in

__________________21. A movement from one point to
determining the price especially if the products are
another on a fixed demand curve
considered basic commodities
__________________22. It is the degree of responsiveness
__________________9. The maximum price to be
when there are changes in the demand and supply
imposed by the seller to its commodity
__________________23. A degree of elasticity wherein
__________________10. The minimum price to be
there is a greater change in quantity demanded or supply.
imposed by the sellers
In mathematical equation it is greater than 1.

__________________11. Refers to the willingness of the

__________________24. A degree of elasticity wherein
people to buy or purchase the goods regardless whether it
there is a lesser change in quantity demanded or supply. In
is a need or want over a period of time at a given place
mathematical equation it is always less than 1.

__________________12. Refers to the willingness of the

__________________25. A degree of elasticity wherein
people to sell or produce the goods regardless whether it is
there is an equal change in quantity demanded or supply.
a need or a want over a period of time at a given price
In mathematical equation Is equal to one.

__________________13. Goods that give the same value

__________________26. It refers to the type of elasticity
but differ in price, brand, form, or shape yet gives the same
that deals with the degree of responsive or people when
satisfaction
there are changes in prices

__________________14. Goods that are go hand in hand

or always together
__________________27. Refers to the type of elasticity ______4. People are encouraged to buy more if the price is

that deals with the degree of responsiveness of people low and they are not willing to pay when the price is high.

when there are changes in income

______5. There will be a surplus of supply once the raw

__________________28. It occurs when there is infinite materials needed for the production is not obtainable.

change in quantity drmanded/ quantity supply

______6. Increase in the price of goods especially the raw

__________________29. It occurs when there is almost no materials will encourage producers to produce more.

change in quantity demanded/ quantity supply because

______8. Producers are encouraged to sell more if the
there is no close substitute for the product
price is high.

__________________30. It measures the relationship

______9. Price and quantity supply are directly
between change in quantity demanded for good X and a
proportional, as the price increases the quantity demanded
change in real income
increase and vice versa.

__________________31. Have an income elasticity of

______10. Luxury products with high income elasticity see
demand between 0 and 1. Demand is rising less than
greater sales volatility than necessities where demand from
proportionately to the income
consumers is more sensitive to changes in cycle.

__________________32. Have an income elasticity of

______11. The income elasticity of demand will also
demand more than or greater than 1 demand rises more
affect the pattern of demand over time.
than proportionate to a change in income
______12. Superior goods are available if the consumer
__________________33. Have a negative income
has the money to buy it.
elasticity of demand meaning that demand false as income
______13. If two goods are substitutes, the result is in high
rises.
positive cross elasticity. The demand for both goods moves
__________________34. Have a positive income elasticity
in the same directions of each other.
demand help firms predict the effect of an economic cycle
______14. If two goods are complements, the results is in
on sales.
a negative number or negative cross price elasticity
__________________35. This refers to the type of
______15. Price and quantity demand are inversely
elasticity that deals with percentage change in the demand
proportional, as the price increases the quantity demand
for one good due to another change in the demand
increases
II. True or False. Write True if the statement is correctly
______16. Credit cards are already a medium of exchange.
and write False if it’s not.
People are tempted to demand because of easy terms of
______1. Needs could be met but wants could not.
paymeny.

______2. The higher the income the less demand ther will
______17. As there will be an increase in the price of
be.
commodity the natural reaction is for people to buy less

______3. An increase in the demand leads to shift of the today to save

demand curve to the left

______18. A decrease in supply is due to the minority Name the two formula use to compute elasticity

numbers of sellers involved in the market 27.

28
______19. The movement of the supply curve depicts an Give the two coefficients of income elasticity
increase and decrease of a certain commodity at a given 29.

locale 30.
IV.
______20. In related goods, whenever there is a change in

the price of one, the demand for its partner also changes.

III. Enumeration

Give the three key players in market

1.
2.
3.
Name the factors that influence demand
4.
5.
6.
7.
8.
9.
10.
Name the factors that influences supply
11.
12.
13.
14.
15.
16.
17.
18.
Give the three different degree of elasticity
19.
20.
21.
Name the two types of elasticity
22.
23.
Give the three related goods
24.
25.
26