Namefl.D. Number: Chapter 3. Supply and Demand Theory: Pre-Class & ln-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'' _1. Market _2. Demand _3. Law of Demand _4. Demand Schedule _5. Demand Curve _6. Law of Diminishing Column \"B" A. A good for which demand rises[falls] as income rises[falls]. B. The willingness 3| ability of sellers to produce 8: offer to _sell different Quantities [Qtys] of a good at different prices during a specic time period C. Any place people come together to trade or exchange _[may take place at a physical or virtual location.) D. The willingness 3| ability of buyers to purchase different _Qty of a good at different prices during a specic time period 9. _E. As the price of a good rises, the quantity [Qty] demanded of the good fails, it as the price of a good falls, the quantity demanded of the good rises, Ceteris Paribus [CP]. t F. The numerical tabulation of the quantity demanded of a good at different prices. It is the numerical representation of the law of demand [DD]. 5"?!\" Marginal Utility 6. A good for which demand falls[rises] as income _7. Own Price _8. Normal Good _9. Inferior Good _10. Neutral Good _11. Substitutes _12. Complements _13. Supply _14. Law of Supply _rises[falls]. _H. Two goods that satisfy similar needs or desires. The demand for one rises[falls] as the price of the other 9. rises[falls] l. A good for which demand does not change as income rises[falls]. h. J. The graphical representation of the law of demand. It _ _represents the price-quantity combination of a particular '- single buyer. It connects the maximum buying prices that the consumer is willing to pay for different quantities of a _ given product. I' _K. As the price of a good rises, the quantity supplied [SSed] It. oftfre good rises, 8: as the price of a good falls, the quantity supplied of the good falls, ceteris paribus [CP]. _L. Two goods that are used jointly in consumption. The DD for one rises [falls] as the price of the other falls [rises]. _M. Fora given time period, the marginal [oradditional] utility l' or satisfaction gained by consuming equal successive units of a good will decline as the amount consumed increases. _N. The price of a good in question[price of the good itself]. n Column \"D\" A place where buyers and sellers meet [ overthe counter-OTC] orvirtually [e-commence]. The price ofthe product in question that is usually shown on a price tag or a sticker price. The direct [positive] relationship that exist bdween the price of a product and its quantity offered for sale. These two variables move in the same direction [as the PxTrnty SSxT or as Fltrm 5811], CP. A good whose quantity demanded increases{decreases] with an increase[a decrease] in income. The Qty demanded of these kinds of goods and services [GSSs] is directly related to the level of income the consumer earns. What is 'nonnal' in one society may be considered \"inferior\" in other societies and the vice versa because of culture it living standard. Examples include; Luxury goods, Fancy restaurant meals as opposed to fast foods [\"inferior goods']. Products that are consumed or used together. The quantity demanded of these kinds of goods depend on the price of the other. in the pair. Examples: Car 5 gasoline, Camera 5 rolls of lms, Tooth brush 8x tooth paste. The quantity demanded of SUVs depend on the price of Gasoline. The higher the price of gas, the lesser the number of SUVs demanded, ceteris paribus [CP]. The law that describes the declining nature of the additional or extra satisfaction that consumers get by consuming successive units of the same product within relative short period oftime. It applies to all goods and services except for money [which is a \"special commodity\"). The marginal utility of money is somewhat constant unlike other commodities that are subject to the diminishing satisfaction. Each additional dollar received has equal additional satisfaction as the previous dollar to humans. This is part of the reason some people can't get enough of it, even after, they become millionaires and billionaires. Examples of this law [LDMU] at work; The level of additional satisfaction received from drinking successive cans of soda within a short period of time or a repeated visit ortrip to Disney land amusement park day after day. A good whose quantity demanded decreaseslincreases] with an increase[a decrease] in income. The quantity demand of these kinds of goods and services [GSs] is inversely related to the level of income the consumer may earn. Examples include; used clothes 8x furniture, and bus travel. The desire to consume or use a product, it is effective only when the willingness to pay for a product is matched by the purchasing power or ability to pay. The inverse [negative] relationship that exist between the price of a product and its quantity demanded. These two variables move in opposite direction [as the PITrm DDxior as PxTrnty DDxl], ceteris paribus [CPtThis is because higher {lower} price discourage [encourage] consumption spending. OF. A tabular representation of the law of demand showing the quantities that the consumer is willing and able to buy at different sets of prices. A good or service whose quantity demanded doesn't depend at all on the level of income earned by the consumer. The consumer demands the same amount of the good or service regardless of the level of income[richer or poorer]. A perfect ousmple could be air but air is not an econorric good it is a free good that cannot be purchased from the market. Less than perfect crumples include; the quality and quantity of water or toila tissue or salt consumed or used. The pictorial or graphical representation of the demand schedule or table that makes it easy to visualize the inverse [negative] relationship that exist between price and quantity demand [the lairI of demand]. Products that can serve as good reptacements to each other for which the consumer is somewhat iriditferent to choose from. Examples of pairs include; Coffee 5 tea, and Coke Si Pepsi. The desire and the ability to produce a uood or a service by a oroducer 8x matte it available for sale