Cor-it'd Namel |.D. Number: Chapter 3. Supply and Demand Theory : Pre-Claas 3. ln- Class Activities Packet Section: Date: Part 2. Matching: Match the Key items 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 denitions 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 _18. Surplus (Excess Supply] _19. Shortage (Excess Demand) _20. Equilibrium Price (Market-Clearing Price) _21. Equilibrium Quantity _22. Disequilibrium Price _23. Disequilibriu m _24. Equilibrium _25. Consumera' Surplus _26. Prod uee rs' {Sellers'} Surplus _27. Total Surplus _28. Sponta neo us Order _29. Market Supply Curve _30. 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 greaterthan quantity p. supplied 8: it occurs only at prices below equilibrium price. 0. The difference between the price sellers receive fora good 8: 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 L _which there is no tendency for buyers or sellers to move away. 8. A supply {88} curve that represents the pricequantity combination _of a product for all sellers. The horizontal summation oi the individual supply curves. T. The numerical tabulation of the quantity supplied ot a good at diiterent 1' _piices. It is the numerical representation of the law of supply [55]. _U. A state ofeither surplus or shortagein the market. 5. u. _U. 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 w. _which the amount oi 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 actiralty 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. 3' _ Y. The price at which the quantity demanded (DDed) of the good 2_ equals the quantity supplied [SScd]. _ Z. The difference between the maximum price a buyer is willing 8: able to pay for a good or senrice it the price actually paid. aa. _AA. A condition in which quantity (Qty) supplied is greater than quantity demanded 8: it occurs only at prices above equilibrium price. bb. BB. The sum of consumers' surplus and producers' surplus :CC. A DD curve that represents the price-Qty combination of a product cc for all buyers. The horizontal summation oi the individual DD curves. dd. _DD. The spontaneous and unintended emergence of order out of the sellinterested actions of individuals; an unintended consequence of human action, with emphasis placed on the word unintended Column \"C\" The sum total of what buyers and setters generate in terms of satisfaction by participating in the marketplace as buyers and sellers, calculated as, T3 = (:5 + 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} it when sellers are expecting at least a higher price than 55 (such as 55 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 equal forces imemal to a given system { such as, the equatity of the forces of market demand and supply} for a product, it also generates what is known as, \"equilibrium price" The suppty curve that represent the sum total of quanties of a given product that all sellers are willing 3x able to offer for sale at different set of prices. The pictorial or graphical representation of 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 quanties of a given product that all buyers are willing a able to buy at dierent set of prices. Tabular representation of the law of supply showing the quantities that the producer is wilting and able to otter forsale or supply atdirlerent sets of prices. Whata 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 T595 discount], the difference is CS, 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 Diseq uiti'brium] The quantity demanded and supplied are the same (equal) at me market ctearing price. It is the only quantity at which the maximum buying price S the minimum selling price are equal (the same). The price at which botll 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, input, or tax credit} given by the government to producers (such as, farmers orbusinesses) to encourage mem to produce more. A market outcome when the price of a product is above market clearing price. What a seller derives as a result of receiving a payment greater than what she or be normally expects to be paid (usuaity greater than the "reserve price\"). Example, the seller is willing toseli her or his product at a minimum price [such as $5;I unit] but instead received much higher that 55 (such as SBtunit). The diiTerence is PS. 4