Cont'd Namerl |.D. Number: Chapter 3. Supply and Demand Theory: Pre-Class 8. ln- Class Activities Packet Sectio n: Date' Part 2. Matching: Match the Key terms in Column "A\" with the denitions in Column \"B" by writing the block [upper] case letterof your choice under column "A" and match the definitions in column \"B" with the meanings or examples or real world applications or facts or formulas in column \"C\" by writing the small [lower] case letter of your choice under column \"B\". Column "A\" _15. Supply Curve _16. Supply Schedule _1?. Subsidy _18. Surplus [Excess Supply] _19. Shortage (Excess Demand} _2l}. Equilibrium Price (Market-Clearing Price} _21. Equilibrium Quantity _22. Disequilibrium Price _23. Disequilibrium _24. Equilibrium _25. Consumers' Surplus _26. Producers' (Sellers') Surplus _2?. Total Surplus _23. Spontaneous Order _29- mark\" Supply Curve :cc. A DD curve that represents the price-Qty combination of a product cc. dd. _3l}. Market Demand Curve Column \"B\" 0. Monetary payment by government to a producer of a good or service 0. _to increase output. P. A condition in which quantity demanded is greater than quantity [3. _supplied it it occurs only at prices below equilibrium price. 0. The difference between the price sellers receive for a good St the _minimum price for which they would have sold the good. q. _R. it means \"at rest\". It is the price-quantity [Price-Qty] combination from 1'. which there is no tendency for buyers or sellers to move away. _5. A supply [55] curve that represents the price-quantity combination of a product for all sellers. The horizontal summation of the individual 5- supply curves. _T. The numerical tabulation of the quantity supplied of a good at different L prices. It is the numerical representation of the law of supply [55]. _U. A state of either surplus or shortage in the market. 11. \\f. A price other than equilibrium price. A price at which the quantity [L demanded does not equal the quantity supplied. _W. The quantity that corresponds to equilibrium price. The quantity at which the amount of the good that buyers are willing and able to buy equals the amount that sellers are willing and able to sell, and both equal 3:. the amount achrally bought and sold. X The graphical representation of the law of supply. It represents the price-quantity combination of a particular single seller. it connects the minimum selling prices that are acceptable by the seller for different quantities for a given product. _ Y. The price at which the quantity demanded [DDed] of the good 2. equals the quantity supplied [SSed]. _ Z. The difference between the maximum price a buyer is willing 81 able to pay for a good or service it the price actually paid. _AA. A condition in which quantity [Qty] supplied is greater than quantity demanded it it occurs only at prices above equilibrium price. W. y. BB. The sum of consumers' surplus and producers' surplus for all buyers. The horizontal summation of the individual DD curves. _DD. The spontaneous and unintended emergence of order out of the seIHnterested actions of individuals; an unintended consequence of human action, with emphasis placed on the word unintended bb. Column \"C\" The sum total oi what buyers and sellers generate in tenrrs of satisfaction by participating in the market place as buyers and sellers, calculated as, T5 = 65 + P5. A market situation (outcome) created by the price divergence between what sellers are expected to be paid and what consumers are willing to pay. Example, when buyers are willing to pay a maximum price [such as $5 per unit} 8: when sellers are expecting at least a higher price than $5 [such as $5 or more for their product]. A market outcome when the price of a product is below market clearing price. Being "at a stable position\" as a result of the exertion of equd forces internal to a given system ( such as, the equality of the forces of market demand and supply] for a product, it also generates what is lorcwn as, "equilibrium price" The supply curve that represent the sum total of quantities of a given product that all sellers are willing 8: able to offer for sale at different set of prices. The pictorial or graphical representation of the supply schedule or tabler that is easyto visualize the direct [positive] relationship that exist between price and quantity supplied [the law of supply]. Unplanned or unexpected occurrence of an event as a result of human action. The demand curve that represent the sum total of quanties of a given product that all buyers are willing & able to buy at different set of pnoes. Tabular representation of the law of supply shooting the quantities that the producer is willing and ableto offer forsale orsupply atdifferentsetsotprices. IA'hat a consumer derives as a result oi paying less than what she or he expects to pay for a product in the market place. Example, if you go to the market and suddenly discover that the product of your choice is on sale [at 25% discount] or, even better, on clearance [at T'lvi: discount], the difference is 05, that is, between what you were willing to pay and what you actual pay. The opposite of equilibrium price where the market fails to clear up because of the situation created by market disequilibrium [see Disequilibrium] The quantity demanded and supplied are the same [equal] at the market clearing price. It is the only quantity at which the maximum buying price 8: the minimum selling price are equal {the same}. The price at which both market demand [by buyers] and market supply [by sellers] are equal. At this price there is no shortage or surplus. This is the price at which all market participants achieve their goals of buying or selling a product . Any kind of support [price, inpri, or tax credit] given by the government to producers (such as, farmers or businesses] to encourage them to produce more. A market outcome when the price of a product is above market clearing price. It'ihat a seller derives as a result of receiving a payment greater than what she or he nonnally expects to be paid {usually greater than the \"reserve price"). Example, the seller is willing to sell her or his product at a minimum price [such as $5! unit] but instead received much higher that $5 [such as $6tunit]. The difference is PS. 4