CONTEMPORARY WORLD

Name: MANSANADE, RONELA B.

Course/Year: BEED/Y-1

1.) What is Scarcity?

-- Scarcity is a situation in which something is not easy to find or obtain. It refers to the limited
availability of a commodity or a lack of resources to acquire it.

2.) Compare and Contrast the Microeconomics to Macroexonomics?

-- Microeconomics and macroeconomics are two branches of economics that focus on different levels
of analysis. Microeconomics deals with individual economic units such as households, firms, and
markets, and examines their behavior and decision-making processes. On the other hand,
macroeconomics looks at the economy as a whole, considering factors such as national income,
employment, inflation, and economic growth. While microeconomics focuses on specific units,
macroeconomics takes a broader perspective and analyzes aggregate variables and trends.

3.) Define what is Demand? Give some situation.

--Demand refers to a consumer's desire and willingness to purchase a product or service at a given price.
It represents the quantity of a good or service that individuals are willing and able to buy at various price
levels. For example, if the price of a smartphone decreases, the demand for smartphones may increase
as more people find it affordable and are willing to purchase one.

4.)Define what is supply? Give some situation.

 -- Supply refers to the quantity of a product or service that producers are willing and able to offer to
the market at different price levels. It represents the relationship between the price of a good and the
quantity that producers are willing to supply. For instance, if the price of a particular commodity
increases, suppliers may be motivated to increase production and supply more of that product to take
advantage of the higher price.

5.) What is the LAW OF DEMAND AND SUPPLY?

The law of demand states that there is an inverse relationship between the price of a good and the
quantity demanded, assuming other factors remain constant. In other words, as the price of a product
increases, the quantity demanded decreases, and vice versa. The law of supply, on the other hand,
states that there is a direct relationship between the price of a good and the quantity supplied,
assuming other factors remain constant.