DEMAND

1. This is a concept which falls under microeconomics and macroeconomics that refers
to the individual’s needs and desire, their ability and willingness to purchase
goods/services at a specific price. (Remembering)
a. Demand c. Market Demand
b. Quantity Demanded d. Aggregated Demand

2. Paul is studying at Samar State University. He enjoys and consumes Kopiko Blanca
everyday especially when he is reviewing for a test. His desire for Kopiko Blanca
dissipated when the price of the product increased. Paul is exhibiting what kind of
concept? (Understanding)
a. Law of Purchasing power c. Law of Consumer
b. Law of Demand d. Law of Price

3. Mark and his classmates are in a karenderiya deciding for their lunch on the
afternoon. Mark has chosen the pinakbet over the adobo because it is affordable
and conforms to his budget as a student. Which determinants of demand has
affected Mark’s demand for Adobo? (Analyzing)
a. Preferences c. Demographic Characteristics
b. Prices of Related Goods and d. Income
Services

4. Changes in the demand curve occurs either if there is change in the price or involves
other variables other than the price which then affect the quantity demanded.
Evaluate the following statements bellow and determine which entails a shift in the
demand curve. Evaluating
I. Sibuyas is one of the primary ingredients to Cristina’s dishes. However, Cristina
was saddened when the price of sibuyas increased which pushed her to
purchase less amount than usual.
II. Derek loves Nike shoes. He was so excited when the brand announced a 30%
sale on the first week of March 2023.
III. Troy was able to treat himself to Jollibee right after he received his monthly
allowance and scholarship.
IV. Meredith loves coffee and tea. However, ever since the incident of milk tea
poisoning which happened last 2015 in Sampaloc, Manila, she never dared to try
or consume milk tea since then.
a. I only
b. I & II only
c. III & IV only
d. II, III, and IV only
In Catbalogan city, launder services charge 160 pesos for every 6 kg of launder per month. With
the current inflation, this caused the service to double. With the use of demand schedule and
curve, how you interpret the above situation? Applying
a. The demand curve for laundry services will extend as the price of the service doubles.
b. The demand curve for laundry services will shift to the left as the price of laundry services
doubles.
c. The demand curve for laundry services will contract as the price of the service
doubles.
d. The demand curve for laundry services will shift to the right as the price of laundry services
doubles.

6. The market demand curve shows

A. The effect on market supply of a change in the demand for a good or service
B. The quantity of a good that consumers would like to purchase at a different prices
C. The marginal cost of producing and selling different quantities of a good
D. The effect of advertising expenditure on the market price of a good
Answer: B
7. Mr. Michael is selling flowers during valentine's day. He is expected to sell 100 bouquet of
flowers at a price of 300 pesos. Then, he decided to increase the price up to 350 pesos to make
more profit out of it. Now, did Mr. Michael sell all of the bouquet of flowers at a price of 350?
A. Yes because the flowers are beautiful
B. Yes because of the high demand and the willingness to pay of the consumers
C. No because it's not worth it
D. No because of the over pricing
Answer: B
8. It states that the more of an item the consumer's consume, the less the satisfaction he/she gets
from each unit consumed or used.
A. Law of demand
B. Substitutional effect
C. Diminishing marginal utility
D. Income effect
Answer: C
9. It is the resultant change in demand of a good or service caused by an increase or decrease in
a consumer's purchasing power.
A. Law of demand
B. Deminishing marginal utility
C. Substitutional effect
D. Income effect
Answer: D

SUPPLY
1. Which of the following would not shift the supply curve?
a. Progress in technology
b. A change in price
c. Increase tax and changes in regulatory
d. Changes in production cost

2. It shows the quantities supplied at different prices during a particular period, all other things
unchanged.
A. Market supply schedule
B. Market supply curve
C. Individual supply schedule
D. Supply schedule
3. The concept of law of supply states_________________.
A. The consumer's desire and willingness to buy a product or service at a given period or over
time.
B. Ceteris paribus as the price of a good rises the quantity supplied of the good falls as the price
of a good rises, the quantity supplied of a good falls at a given period of time.
C. The willingness and ability of a seller to produce and offer to sell at different of a good and
prices for a period of time.
D. Ceteris paribus, as the price of a good rises the quantity supplied of the good rises as
the price of a good falls, the quantity supplied of a good falls at a given period of time .

4. A supply curve upward sloping because

A. It shows a positive correlation between a product cost and the quantity produced by a firm.
B. as price increases, suppliers can justify producing at higher marginal costs as long as MC=P
C. It shows a positive correlation between a product price and the quantity produced by a
firm
D. As price increases, suppliers can justify producing at higher marginal costs as long as MC>P

5. Let assume that Aling Norma has 25 sacks of garlic stocked in her store. She need to sell
them at a given price of 3000 to 5000 per sacks. However, the buyer wanted to double the
quantity regardless its price. What does the situation indicate?
A. The quantity supplied is fixed and supply curve is vertical
B. The quantity supplied is fixed and supply curve upward sloping
C. The price increased so does the quantity supplied
D. The law of supply holds most of the production goods.
MARKET EQUILIBRIUM

Remember
QUESTION:
It is the price at which the quantity demanded of a good is equal to the quantity supplied.
A. Equilibrium Price
B. Market-Clearing Price
C. A only
D. B only
E. Both A and B

Understand
QUESTION:
Which of the following best describes equilibrium in a market?
A. The price of a good makes the quantity buyers want to buy the same as the quantity
sellers wish to provide.
B. The price is such that the quantity supplied is greater than the quantity demanded.
C. The price is such that the quantity demanded is greater than the quantity supplied.
D. There are more people who want to buy a good than are sellers willing to sell at the current
price
E. There are more people who want to sell the good than buyers willing and able to purchase
the product at the current price.

Apply
QUESTION:
Last year, the price of onions peaked at 700 pesos per kilo from the usual less than 100 pesos per
kilo. If you were the seller, what would you have done to bring the market at rest, taking the law of
demand into consideration?
A. Sauté the onions.
B. Auction all the onions.
C. Reduce your onion inventory.
D. Lower the price of the onion.
E. Cut back the onion production.

Analyse
QUESTION:
Please refer to the market for puto-puto shown on the
left.

Which of the following explains why 7 pesos is not an

equilibrium price in the market for puto-puto?
A. The quantity demanded and quantity
supplied are equal.
B. The quantity demanded is greater than
the quantity supplied.
C. The demand is greater than the supply.
D. The quantity supplied is greater than the
quantity demanded.
E. The supply is greater than the demand.

Evaluate
Which of the following statements about the language of demand and supply is/are incorrect?
A. Excess Supply is a condition in which the quantity supplied is greater than the quantity
demanded.
B. Equilibrium is the state of either surplus or shortage in a market.
C. Excess Demand is a condition which the quantity demanded is less than the quantity
supplied.
D. Both A and B
E. All except A