Answer the following:

1. Define demand and supply

2. Cite three (3) factors and write a scenario for each on how price can affect the
following: 
Demand
Supply
3. As a buyer/consumer, what is your behavior in terms of buying a product?
4. If you are the producer or seller of your product, what will be your behavior for you
to be able to sell your commodity?
5.  What will happen to the price and quantity of a product if the demand
increases? What will happen to the price and quantity of a product if the demand
decreases?  Explain. .

1. supply and demand, in economics, relationship between the quantity of a commodity

that producers wish to sell at various prices and the quantity that consumers wish to buy. It is
the main model of price determination used in economic theory. The price of a commodity is
determined by the interaction of supply and demand in a market. The resulting price is
referred to as the equilibrium price and represents an agreement between producers and
consumers of the good. In equilibrium the quantity of a good supplied by producers equals the
quantity demanded by consumers.
2. The three factors that affect supply and demand are price fluctuation, availability of
alternatives or competition and also trends. The example scenarios of these are in the
following. In price fluctuation let’s say I am a seller of slippers a customer went in front of
my shop and asked how much does my goods or slippers cost and I answered it but he
didn’t like it so he went saying why does it cost too much? I bought my slippers lower than
this. Price fluctuation results on increase in prices and also the cause of lower demands.
The second one is the competition, it’s kind of the same with the first one but this one is
because of competitors for example. I wanna buy a fish in the market the first stall I asked
for the cost of their fish is kind of high so I went going to another stall to buy theirs meaning
it is much cheaper than the other stall. Trends also affect the demand and supply. The
example scenario is. We’re selling toys in our store and a boy came inside it but he didn’t
find what’s he’s been looking which is the toy he saw on the television earlier so the boy
went home disappointed and also the same set of kids goo finding it in the store but the
same thing happened.
3. As a customer my behavior of in terms of buying a product is first is what we called “
suki” of course I’ll go for it to have such lower price and save my budget also, the quality of
the product I want to make sure the product’s quality is okay before I do it to avoid waste of
money on buying the product.
4. If I were a seller my behavior on how customers buy my products is being considerate on
selling the goods because it would be better off that way than have no goods sold at all and
also I will lower the price favorable for the customers but at the same time I’m not at lost.
Also lastly I’ll make sure that the products I am selling Is in good shape or quality for the
customers to like it..
5. If the demand increases it will also lead into the increase in prices because if the product
is high on demand then people will be willing to buy it regardless of the cost. And if the
demand increase the quantity of products will decrease because of demands sold. If the
demand decreases the price will also decrease because no one will going to buy it more if
the price of low demand goods are sold higher.