Good Samaritan CollegesCollege of Arts and Sciences

Basic Economics with Taxation and Land Reform

Direction: Identify what is being ask in the question. Write your answer in a sheet of paper.

I. IDENTIFICATION

1. Latin word which means holding other variable constant.2. Part of income used by individual to purchase the goods and services the individual or household needed.3. The behavior of consumer which is affected by weather, perception, information, occassion and the like.4. Those commodities which they perform the same function and can satisfy the same needs and wants.5. This will happen if the price factor has been changed.6. States that as the price of the commodity increases, all other thing remain constant, quantity demanded decreases.7. Goods that are consumed together.8. Occurs when the non-price factor changed.9. Part of income that is being saved for future purposes.10. Is the minimum price set by the government in which the commodity can be purchased.

II. ENUMERATION

1. Three forms by which demand can be represented2. What are the non-price factor that affects the demand3. Two points of market equilibrium4. Two divisions of income5. What are the non-price factor that affects the supply.

III. ESSAY (5 POINTS)

1. What are the notable distinctions between demand and supply?2. Give atleast 2 factors affecting supply and discuss briefly.3. Why it is important to study the law of demand and supply?