A. DEMAND: For each of the following cases, state how the demand for isuzu crosswind behaves i.e. whether there is an increase or decrease in demand or quantity demanded.

*The price of gasoline rises because of a shortage in the world petroleum market.

*The lower priced "Mitsubishi Adventure" enters the car market.

*The country is hit by a recession, causing a fall in real incomes.

*The government imposes a 10 percent import levy on all imported car parts.

*A lower rate of fatalities in accidents involving Isuzu crosswind is observed.

B. SUPPLY: Indicate whether a movement upward or downward along the supply curve, or a shift leftward or rightward of the supply curve of mangoes occurs for the following cases.

*The surge in export demand raises prices

*The government imposes a price ceiling on mangoes to appease consumers who have not enough fruits last year.

*A new variety is developed which doubles the output per tree

*The current crop of mangoes is infested by fruit flies

*The price of pesticides against fruit flies increases due to the 10 percent import levy.

C. Describe what will happen to equilibrium price and quantity of each of the commodities given the corresponding hypothetical situations

*Coffee: the Philippine Medical Association announces that caffeine in coffee causes heart attack.

*National Bookstore's Books: Management engages in a one month cut-price book sale.

*Rice: Government imports rice from Thailand

*Pork: Foot and mouth disease (FMD) hits thousands of pigs resulting in a very high mortality rate.

*Cigarettes: Taxes on cigarettes are increased from P2 to P3 per pack.

Write "TRUE" if the statement is correct and "FALSE" if otherwise.

*The demand for a product is the quantity of good that the buyers are willing to buy a certain price.

*The demand function shows how the quantity demanded of a good is dependent on its determinants.

*The demand curve is upward-sloping to the right.

*A coefficient of income elasticity shows us how elastic demand is.

*A positive cross price elasticity implies that goods are complementary.

*Inferior goods are purchased more at higher income levels.

*The more substitutes a good have the more inelastic in demand it becomes.

*The more important a good is to a consumer the more inelastic in demand it becomes.

*Normal goods are goods that gain importance as income increases.

*Complementary goods are used together.

II. Indicate what happens to the demand curve for mangoes (A. shift to the left, B. shift to the right, C. no effect) given the following situation.

* The price of pineapple, a substitute, good increases.

*The quantity demanded decreases.

*There is an increase in the export for Philippines mangoes

*Typhoon caused damaged to mangoes decreasing the supply for mangoes.

*More people prefer mangoes to pineapples

*The price of mangoes increases

*It is the season for mangoes

*Income increased

*New technology increased mango production

*Cost of production decreased.

D.

_____ 1. ___ can also cause an upward shift in the budget line.

A.Higher prices

B.Higher indifference curve

C.Higher utility

D.Lower prices

_____ 2. The rate of substitution alo9ng the indifference curve implies _____.

A.Utility trade-off

B.Commodity trade-off

C.Relative prices

D.Relative utility of commodities

_____ 3. Another indifference curve corresponds to another level of satisfaction because of the change in _____.

A.Budget

B.Prices

C.Consumption level

D.Utility

_____ 4. The maximum satisfaction point of a budget line is where it is tangent to an indifference curve because _____.

A.Higher indifference curve yields more satisfaction

B.Budget can only buy the satisfaction of the indifference curve within it.

C.The highest indifference curve within a budget line is that which is tangent to it.

D. All of the above

_____ 5. Deviation from the quasi-marginal condition results in less satisfaction because of _____.

A.Relative prices

B.Commodity trade-off

C.Relative utility of commodities

D.Utility trade-off

_____ 6. Substitution effect results from a _____.

A. Change in marginal utility

B.Change in relative marginal utility

C. Decrease in the marginal utility of one commodity

D. Change in total satisfaction

_____ 7. There is consumer surplus when one _____.

A.Pays less for succeeding consumption

B.Pays less for preceding consumption

C.Pays more for succeeding consumption

D.None of the above

_____ 8. Water is cheaper than diamond because of _____.

A.Need

B.Utility in use

C.Utility in exchange

D.Purchasing power

_____ 9. The marginal rate of substitution of Product A for Product B is ____ when there is more preference for the farmer.

A.Higher

B.Unchanged

C.Varied

D.Lower

_____ 10. The budget line _____ when incomes increase.

A.Shifts upward

B.Shifts downward

C.Does not change

D.Varies

*what is being described

_____ 1. Change in overall consumption due to a change in price.

_____ 2. Change in consumption mix due to a change in price.

_____ 3. Equality in the marginal utilities of a commodity item.

_____ 4. One factor that changes the consumption mix favors the commodity over another.

_____ 5. Causes total satisfaction to change.

_____ 6. It is the basis of consumption and demand behavior.

_____ 7. The proponent of Theory of Motivation, which explains the psychological factors that affect consumer behavior.

_____ 8.the psychological law that is based on subjective valuation of satisfaction.

_____ 9. Term in economics for satisfaction.

_____ 10. It depicts the combination that does nor yield any difference in satisfaction.

_____ 11. Social group that has a direct or indirect influence on one's consumer behavior.

_____ 12. Complete description of an indifference curve's shape.

_____ 13. The relationship of these two graphical illustrations tells the best combination in the consumption of times following a limited budget.

_____ 14. What MRS stands for.

_____ 15. The potential consumption of a certain tem on its market price and the income of its buyers.

_____ 16. Principles behind a consumer finding a consumption mix that will garner him the highest level of satisfaction.

_____ 17. Formula for marginal utility.

_____ 18. It is the function of the units of consumption.

_____ 19. The set of activities a person is expected to perform.

_____ 20.it is the function of the units of consumption.