ACLC COLLEGE OF MANDAUE

Department of Business & Accountancy

Final Examination

INTRO TO MICROECONOMICS

Note: Please send back your answer through email on or before December 22, 2018
Part 1. True or False. Write T if the statement is true otherwise write F if false.
1. ___T__ A market is an interaction between buyers and sellers for trade or exchange. The consumer sells and
the seller buys.
2. __T___ A demand for a product is the quantity of a good that the buyers are willing to buy at certain prices.
3. __T___ One of the non-price determinants of demand is taste. Taste or preferences may vary from person to
person.
4. __F__ The consumer’s income does not influence the demand for goods and services.
5. __T__ An increase in population results in a greater demand since there will be more consumers as population
increases.
6. __T___ The supply of a product is the quantity of goods that sellers are willing to sell. The supply schedule
shows the different quantities that will be sold.
7. __F___ An increase in technology will reduce the supply of goods while an increase in cost of production may
increase.
8. __T___ Price elasticity is an important decision-making tool to seller because based on the nature of the good,
he can decide on haw far to go with a price change.
9. __F___ Equilibrium means a state of balance. The economist is very much concerned with equilibrium, but it is
a situation that is hard to attain. Disturbances often appear to prevent attainment of equilibrium.
10. __T___ Demand or supply may be described as elastic when a change in a determinant leads to a
proportionately greater change in quantity of demand and supply.
11. __T___ Normally, price elasticity has a positive sign because of the direct relationship between price and
demand.
12. ___F__ The estate of supply in excess over demand is called shortage.
13. __T____ While demand is more than that of supply is called surplus.
14. ___T__ Price elasticity of demand is the responsiveness of consumers’ demand to change in price of the goods
sold.
15. __F___ Income elasticity of demand is the responsiveness of consumers’ demand to a change in their income.

Part 2. Briefly discuss the Law of Supply and Demand.

If price goes up, quantity demanded go down

If price go down, quantity demanded goes up

If the consumer meet the standard of the excess price than the quantity it will go down
If the quantity is higher than the price it means the price is lower/cheaper.

END OF THE EXAMINATION. MERRY CHRISTMAS AND A HAPPY NEW YEAR TO

ALL!