Cont'd Namerl |.D. Number: Chapter 3. Supply and Demand Theory: Pre-Class 8. In- Class Activities Packet Section: Date' Part 2. Matching: Match the Key terms in Column "A\" with the denitions in Column \"B" by writing the block [upper] case letter of 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 _17. Subsidy _13. Surplus (Excess Supply] _19. Shortage (Excess Demand} _2lJ. Equilibrium Price (Market-Clearing Price] _21. Equilibrium Quantity _22. Disequilibrium Price _23. Disequilibrium _24. Equilibri um _25. Con sumers' Surplus _26. Producers' (Sellers') Su rplus _2?. Total Surplus _23. Spontaneous Order _29- Market SUPP\"l 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. _su pplied ti: it occurs only at prices below equilibrium price. 0. The difference between the price sellers receive for a good ti 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 r. which there is no tendency for buyers or sellers to move away. _5. A supply [55] curve that represents the pricequantity combination of a product for all sellers. The horizontal summation ofthe individual 5- supply curves. _T. The numerical tabulation of the quantity supplied of a good at different 1' prices. It is the numerical representation of the law of supply [55]. _U. A state of either surplus or shortage in the market. tr. \\f. A price other than equilibrium price. A price at which the quantity v_ 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 X. 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. _ Y. The price at which the quantity demanded [DDed] of the good 2. eq uals the qu antity supplied [SSed]. _ Z. The difference between the maximum price a buyer is willing 3r able to pay for a good or service 3. 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. BB. The sum of consumers' surplus and producers' surplus W. for all buyers. The horizontal summation of the individual DD curves. DD. The spontaneous and unintended emergence of order out of the self-interested actions of individuals; an unintended consequence of human action. with emphasis placed on the word unintended bb. Column \"C\" The sum total ot what buyers and sellers generate in terrrrs of satisfaction by participating in the market place as buyers and sellers, calculated as, T5 = 65 + PS. 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 55 [such as $6 or more for their product]. A market outcome when the price of a product is below market clearing price. Being "at a strhle pcsition'I as a result of the exertion of equd forces irrEmal to a given system (such as, the equality oflhe forces of market demand and supply] fora product, it also generates what is known as, "equilibrium price" The supply curve that represent the sum total of quantities of a given product that all setters are willing 8: able to offer for sale at different set of prices. The pictorial or graphical representation at the supply schedule or table, that is easy to 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 quantities of a given product that all buyers are willing & able to buy at different set of prices. Tabular representation of the law of supply shouting the quantities that the producer is willing and ableto offer forsale or supply atdifferentsetsotprices. It'lhat a consumer derives as a result of 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'lt: 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 cleanng 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 inprl, 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'lhat a seller derives as a result of receiving a payment greater than what she or he normally 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 $6turiit}. The difference is PS. 5