Name: Score:

Couse/Section: Date:

Part I: Multiple Choice

Directions: Encircle the letter that corresponds to the correct answer.

1. It pertains to the quantity of a good or service that people are ready to buy at a given prices within a
given time period, when other factors besides price ate held constant.

a. Supply c. Demand e. Product

b. Market d. Quantity

2. Examine the following statements:

I. Market pertains to the quantity of a good service that people are ready to buy at given prices within a
given time period, when other factors besides price are held constant.

II. A wet market is where people usually buy vegetables, meat, fish and other wet products. On the
other hand, a dry market is where people buy shoes, clothes and other dry goods.

III. Market is where buyers and sellers meet. It is also the place where they both trade or exchange
goods and services. In other words, it is where their transaction take place.

a. True; True: True c. False; True; True e. False; False; True

b. True; False; True d. True; True; False

3. It refers to a graphical representation showing the relationship between price and quantities
demanded per time period.

a. Demand c. Supply curve e. Supply

b. Demand curve d. Demand function

4. It shows the relationship between demand for a commodity and the factors that determine or
influence this demand.

a. Demand c. Demand function e. Demand schedule

b. Supply d. Demand curve

5. It is a general understood as a “state of balance”.

a. Market c. Equilibrium e. Demand

b. Products d. Supply
6. It refers to goods that are exchanged with another good.

a. Complementary goods d. Public goods

b. Substitute goods e. Merit goods

c. Giffen goods

7. The goods that complement each other are known as .

a. Substitute goods d. Complementary goods

b. Merit goods e. Giffen goods

c. Public goods

8. The quantity of goods and services that firms are ready and willing to sell at a given price within a
period of time, other factors that are held constant, is called .

a. Demand c. Demand curve e. Supply schedule

b. Supply d. Supply curve

9. It is a graphical representation showing the relationship between the prices of the product sold or the
factor of production and the quantity supplied per time period.

a. Demand curve c. Demand function e. Supply

b. Supply schedule d. Supply function

10. It pertains to a balance that exists when quantity demanded equals quantity supplied.

a. Market equilibrium c. Supply e. Demand

b. Equilibrium d. Shortage

11. What do you call the conditions in the market where the quantity supplied is more than the quantity
demand?

a. Shortage c. Demand e. Equilibrium

b. Surplus d. Supply

12. It is a condition in the market where the quantity demand is higher than the quantity supplied at a
given price.

a. Demand c. Surplus e. Equilibrium

b. Supply d. Shortage
13. What do you call the legal minimum price imposed by the government on certain goods and
services?

a. Floor price c. Price ceiling e. Surplus

b. Price control s d. Products

14. The legal maximum price imposed by the government is known as .

a. Price controls c. Floor price e. Shortage

b. Price ceiling d. Surplus

15. This is the specification by the government of minimum or maximum prices for the certain goods
and services, when the government considers existing prices disadvantageous to the producer or
consumers.

a. Floor price c. Price ceiling e. Shortage

b. Price controls d. Surplus

 Part II. Graph Analysis

Directions: Write your answer on the space provided.

Demand Curve Analysis Supply Curve Analysis

Choices:

a. Point A d. Point B-C g. Point D j. Point E-F

b. Point C e. Point B h. Point F

c. Point A-B f. Point D-E i. Point E

1. At what point does a consumer want to buy 16 to 19 units of goods.

2. At what point does a consumer want to buy unit of goods at a price of 10?

3. At what point does a consumer want to buy 45 units of goods?

4. At what point does a consumer want to buy units of goods at a price of 27?

5. At what point does a consumer want to buy units of goods at a price of 18?

6. At what point does quantity supplied changes from 30 to 42?

7. A producer wants to sell his units of goods at a price of 17 at what point?

8. A producer wants to sell his units of goods at a price of 60 at what point?

9. Quantity supplied is 79 at what point?

 10. A producer wants to sell his units of goods at a price of 55 at what point?

Part III. Essay

Directions: Discuss the movements of demand and supply curves relative to the forces that affect them.

What forces cause the demand and supply curve to go up or go down?

Discussion:
 Part IV: Matching Type

Directions: Match the items in Column A with the items in Column B by writing the corresponding letter
on the space provided. Answers can be repeated.

A B

1. Taste of Preference a. A state of balance

2. Increase in supply b. The place where buyers and sellers trade

3. A fall in demand c. When supply curve shifts to the right

4. Decrease in supply d. When demand curve shifts to the left

5. Profit e. He/she demands pfor goods and services

6. Government policy f. Higher demands, less supply

7. Population change g. The main goal of firms

8. If there is surplus? h. Price selling

9. Increase in demand i. Price up, demand down (vice versa)

10. Technological change j. When demand curve shifts to the right

11. Law of supply k. Forces that affect the slope of demand

12. Changing incomes l. Price floor

13. Substitute goods m. Forces that affect the slope of supply

14. Equilibrium n. When supply curve shifts to the left

15. Satisfaction o. Price up, supply up (vice versa)

16. Future expectation p. The main goal of consumers

17. Factors of production

18. Weather condition

19. If there is a storage?

20. Shortage

21. Law of demand

22. Consumer
23. Seasonal products

24. Number of sales

25. Profit