New Era University
No. 9 Central Avenue Barangay New Era, Quezon City 1107
Email Address: cba@[Link] // Phone Number: 02-981-4221
Name: Angel B. Comendador Subject: Basic Microeconomics
Professor: Prof. Yolanda C. Puno Date: February 13, 2024
QUIZ 2: TABLE
MATRIX OF COMPARISON
DEMAND AND SUPPLY
FEATURES DEMAND SUPPLY
Definition The desire and ability of The amount of goods or services
consumers to buy a specific producers are willing to provide
product at a certain price. at a given price.
Schedule Shows the quantity of a product Shows the quantity of a product
demanded at different prices. supplied at different prices.
Function Represents the relationship Represents the relationship
between price and quantity between price and quantity
demanded, showing that as supplied, showing that as price
price decreases, quantity increases, quantity supplied
demanded increases. increases.
Law The law of demand states that The law of supply states that as
as price decreases, quantity price increases, quantity
demanded increases, and vice supplied increases, and vice
versa. versa.
Determinant Factors influencing demand Factors influencing supply
include consumer preferences, include production costs,
income, prices of related goods, technology, government policies,
and more. and more.
Low-Price Determinant Consumers are more likely to Producers may be less willing to
buy when prices are lower, supply when prices are lower,
leading to higher demand. leasing to lower supply.
Curve The demand curve slopes The supply curve slopes
downwards, showing the inverse upwards, showing the positive
relationship between price and relationship between price and
quantity demanded. quantity supplied.
Relationship (Price and Qty.) Inversely related: as price Directly related: as price
increases, quantity demanded increases, quantity supplied
decreases, and vice versa. increases, and vice versa.
New Era University
No. 9 Central Avenue Barangay New Era, Quezon City 1107
Email Address: cba@[Link] // Phone Number: 02-981-4221
MATRIX OF COMPARISON
THEORIES OF CONSUMPTION AND PRODUCTION
FEATURES THEORY OF CONSUMPTION THEORY OF PRODUCTION
Definition Explains how consumers Examines how businesses or
make decisions about what to producers determine how
buy and consume, based on much to produce, considering
their preferences and budget factors such as costs,
contraints. technology, and resources.
Function Describes the relationship Illustrates how output
between income, price, and (quantity produced) changes
quantity demanded, showing in response to changes in
how changes in these factors inputs such as labor, capital,
affect consumers’ purchasing and materials.
decision.
Curves Typically represented by Often depicted by production
demand curves, which slope curves, which show the
downwards to illustrate the relationship between inout
inverse relationship between and output.
price and quantity demanded.
The Law of Diminishing States that as an individual States that as more units of a
Marginal consumes more of a variable input are added to
particular good or service, the fixed inputs, the additional
additional satisfaction output produced will
(marginal utility) from each eventually decreased.
additional unit trends.
Example of Combinations A consumer deciding how to A company determining the
allocate their budget between optimal combination of labor
different goods or services, and capital to maximize
considering their preferences production efficiency and
and prices. minimize costs.
Concepts Covered Covers concepts such as Includes concepts like
utility, consumer equilibrium, production function,
and the income and economies of scale, and
substitution effects. factors of production.