ECONOMIC_EVALUATION OF CHAPTER 3

Page 82-85

A.Multiple Choice
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B.Essay

1.Explain the definition of demand.
 -Demand refers to the amount of products that consumers are willing and able to purchase at various prices in a given frame of time, a.g. one day , one week, or one month.

2.Explain the factors influencing individual demand and supply.
  -factors influencing demand :
   1.Price of goods or services
   2.Individual income
   3.Price of related goods or services
   4.Personal tastes
   5.Consumer's expectation
  -factors influencing supply :
   1.Price
   2.Resources
   3.Technology
   4.Producer's expectation

3.How does production cost affect the quantity supplied.

4.Explain the law of demand.When does the law apply?
  -The law of demand states that the demand quantity of a commodity and its price are inversely related, if other things remain constant (ceterisparibus).

5.Explain the meanings of shifting in demand curve and movement along the demand curve.

6.Explain the impact of subtitute goods to demand elasticity.

7.How does time frame affect on demend.

8.Explain the meaning of market equilibrium price.

9.Explain how the change in market equilibrium happens.

10.Explain the factors influencing the elasticity of demand and supply.
   -factors influencing the elasticity of demand:
   a.The availability of subtitute goods.