Name/I.D. Number: Section: Date: Part 2. Matching: Match the Key terms in Column "A" with the definitions 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" Column "B" Column "C" 1. Market A. A good for which demand rises(falls) as income a. A place where buyers and sellers meet ( over the counter-OTC) or virtually (e-commerce). rises(falls) b. The price of the product in question that is usually shown on a price tag or a sticker price 2. Demand B. The willingness & ability of sellers to produce & offer to C. The direct (positive) relationship that exist between the price of a product and its quantity offered for sell different Quantities (Qtys) of a good at different prices sale. These two variables move in the same direction (as the Px-Qty SSx1 or as Px)-Qty SSx!), CP. during a specific time period d. A good whose quantity demanded increases(decreases) with an increase(a decrease) in income. The 3. Law of Qty demanded of these kinds of goods and services (G&Ss) is directly related to the level of income the C. Any place people come together to trade or exchange consumer earns. What is "normal" in one society may be considered "inferior" in other societies and the vice Demand (may take place at a physical or virtual location.) versa because of culture & living standard. Examples include; Luxury goods, Fancy restaurant meals as 4. Demand D. The willingness & ability of buyers to purchase different opposed to fast foods ("inferior goods"). Schedule Qty of a good at different prices during a specific time period e. Products that are consumed or used together. The quantity demanded of these kinds of goods depend on 5. Demand E. As the price of a good rises, the quantity (Qty) demanded the price of the other, in the pair. Examples: Car & gasoline, Camera & rolls of films, Tooth brush & tooth of the good falls, & as the price of a good falls, the quantity paste. The quantity demanded of SUVs depend on the price of Gasoline. The higher the price of gas, the Curve demanded of the good rises, Ceteris Paribus (CP) esser the number of SUVs demanded, ceteris paribus (CP). f. The law that describes the declining nature of the additional or extra satisfaction that consumers get by 6. Law of F. The numerical tabulation of the quantity demanded of a consuming successive units of the same product within relative short period of time. It applies to all goods and Diminishing good at different prices. It is the numerical representation of services except for money (which is a 'special commodity"). The marginal utility of money is somewhat the law of demand (DD). constant unlike other commodities that are subject to the diminishing satisfaction. Each additional dollar Marginal Utility G. A good for which demand falls(rises) as income received has equal additional satisfaction as the previous dollar to humans. This is part of the reason some 7. Own Price rises(falls) 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 H. Two goods that satisfy similar needs or desires. The within a short period of time or a repeated visit or trip to Disney land amusement park day after day. 8. Normal demand for one rises(falls) as the price of the other g. A good whose quantity demanded decreases(increases) with an increase(a decrease) in income. The Good rises(falls) quantity demand of these kinds of goods and services (G&Ss) is inversely related to the level of income the I. A good for which demand does not change as income consumer may earn. Examples include; used clothes & furniture, and bus travel. 9. Inferior rises(falls) h. The desire to consume or use a product, it is effective only when the willingness to pay for a product is Good J. The graphical representation of the law of demand. It matched by the purchasing power or ability to pay. _10. Neutral represents the price-quantity combination of a particular i. The inverse (negative) relationship that exist between the price of a product and its quantity Good single buyer. It connects the maximum buying prices that demanded. These two variables move in opposite direction (as the Px-+Qty DDx/or as Px-Qty DDx!) the consumer is willing to pay for different quantities of a ceteris paribus (CP).This is because higher (lower) price discourage (encourage) consumption spending, CP. j. 11. Substitutes given product. 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. K. As the price of a good rises, the quantity supplied (SSed) k. of the good rises, & as the price of a good falls, the quantity A good or service whose quantity demanded doesn't depend at all on the level of income earned by the 12. Complements consumer. The consumer demands the same amount of the good or service regardless of the level of supplied of the good falls, ceteris paribus (CP) income(richer or poorer). A perfect example could be air but air is not an economic good it is a free good L. Two goods that are used jointly in consumption. The DD that cannot be purchased from the market. Less than perfect examples include; the quality and quantity of 13. Supply for one rises (falls) as the price of the other falls (rises). water or toilet tissue or salt consumed or used. M. For a given time period, the marginal (or additional) utility - The pictorial or graphical representation of the demand schedule or table that makes it easy to visualize or satisfaction gained by consuming equal successive units the inverse (negative) relationship that exist between price and quantity demand (the law of demand). 14. Law of of a good will decline as the amount consumed increases. M. Products that can serve as good replacements to each other for which the consumer is somewhat Supply N. The price of a good in question(price of the good itself). indifferent to choose from. Examples of pairs include; Coffee & tea, and Coke & Pepsi The