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 "(" by writing the small (lower) case letter of your choice under column "B"_ Column "A" Column "B" Column "C" 15. Supply Curve O. Monetary payment by government to a producer of a good or service 0. The sum total of what buyers and sellers generate in terms of satisfaction by to increase output. participating in the market place as buyers and sellers, calculated as, TS = CS + PS. 16. Supply Schedule P. A condition in which quantity demanded is greater than quantity P. A market situation (outcome) created by the price divergence between what supplied & it occurs only at prices below equilibrium price. 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) & when sellers 17. Subsidy Q. The difference between the price sellers receive for a good & the are expecting at least a higher price tham $5 (such as $6 or more for their product). minimum price for which they would have sold the good. q. A market outcome when the price of a product is below market clearing price. 18. Surplus R. It means "at rest'. It is the price-quantity (Price-Qty) combination from r. Being "at a stable position" as a result of the exertion of equal forces internal to a which there is no tendency for buyers or sellers to move away. given system ( such as, the equality of the forces of market demand and supply) for a (Excess Supply) S. A supply (SS) curve that represents the price-quantity combination product, it also generates what is known as, "equilibrium price" 19. Shortage of a product for all sellers. The horizontal summation of the individual S. The supply curve that represent the sum total of quantities of a given product supply curves. that all sellers are willing & able to offer for sale at different set of prices (Excess Demand) T. The numerical tabulation of the quantity supplied of a good at different The pictorial or graphical representation of the supply schedule or table, that is 20. Equilibrium Price prices. It is the numerical representation of the law of supply (SS) easy to visualize the direct (positive) relationship that exist between price and quantity supplied (the law of supply). (Market-Clearing Price) U. A state of either surplus or shortage in the market. U. Unplanned or unexpected occurrence of an event as a result of human action. 21. Equilibrium Quantity V. A price other than equilibrium price. A price at which the quantity V. The demand curve that represent the sum total of quantities of a given product demanded does not equal the quantity supplied. that all buyers are willing & able to buy at different set of prices 22. Disequilibrium Price W. The quantity that corresponds to equilibrium price. The quantity at W. Tabular representation of the law of supply showing the quantities that the which the amount of the good that buyers are willing and able to buy producer is willing and able to offer for sale or supply at different sets of prices. 23. Disequilibrium equals the amount that sellers are willing and able to sell, and both equal X. What a consumer derives as a result of paying less than what she or he expects the amount actually bought and sold. to pay for a product in the market place. Example, if you go to the market and 24. Equilibrium X. The graphical representation of the law of supply. It represents the suddenly discover that the product of your choice is on sale (at 25% discount) or, even better, on clearance (at 75% discount), the difference is CS, that is, between what you price-quantity combination of a particular single seller. It connects the were willing to pay and what you actual pay- minimum selling prices that are acceptable by the seller for different 25. Consumers' Surplus y- The opposite of equilibrium price where the market fails to clear up because of quantities for a given product. the situation created by market disequilibrium (see Disequilibrium) 26. Producers' Y. The price at which the quantity demanded (DDed) of the good Z. The quantity demanded and supplied are the same (equal) at the market clearing equals the quantity supplied (SSed). price. It is the only quantity at which the maximum buying price & the minimum (Sellers') Surplus Z. The difference between the maximum price a buyer is willing & able selling price are equal (the same)- 27. Total Surplus to pay for a good or service & the price actually paid. aa. The price at which both market demand (by buyers) and market supply (by AA. A condition in which quantity (Qty) supplied is greater than quantity sellers) are equal. At this price there is no shortage or surplus. This is the price at 28. Spontaneous Order demanded & it occurs only at prices above equilibrium price. which all market participants achieve their goals of buying or selling a product . bb. Any kind of support (price, input, or tax credit) given by the government to BB. The sum of consumers' surplus and producers' surplus producers (such as, farmers or businesses) to encourage them to produce more. 29. Market Supply Curve CC. A DD curve that represents the price-Qty combination of a product CC. A market outcome when the price of a product is above market clearing price. for all buyers. The horizontal summation of the individual DD curves. dd. What a seller derives as a result of receiving a payment greater than what she or 30. Market Demand DD. The spontaneous and unintended emergence of order out of the he normally expects to be paid (usually greater than the "reserve price") self-interested actions of individuals; an unintended consequence of Example, the seller is willing to sell her or his product at a minimum price (such as $5 Curve human action, with emphasis placed on the word unintended unit) but instead received much higher that $5 (such as $6/unit]. The difference is PS
