Alfred Ajibola
- Mon, 09th September, 2019 @ 2:50 PM
Topics in Economics
Factors affecting population in economics Advantages of Inflation Disadvantages of Inflation Concept of Inflation in Economics Scheme of work for Economics, SS1, First Term Scheme of work for Economics, SS1, Second Term Scheme of Work for Economics, SS1, Third Term Functions of the Wholesaler Advantages and Disadvantages of the Wholesaler Wholesale Market: Who is a Wholesaler? Characteristics of the Wholesaler Retail Market: Who is a Retailer and Examples of Retailers Market: Types of Market Market - What is a Market in Economics? Elasticity of Supply: Types of Supply Elasticity Supply Elasticity: Elasticity of Supply explained Demand Schedule - Types of Demand Schedule Demand: What is Demand? Law of Demand Concept and Types of Cost Supply, Supply Curve and Law of SupplyAcademic Questions in Economics
Which of the following is not a financial market?
A. Money Market
B. Bond Market
C. Foreign Exchange Market
D. Virtual Market
E. Capital Market
F. Stock Exchange Market
A _____ market provides a platform whereby job seekers link up with employers in an attempt to be hired.
A. Wholesale market
B. Bond market
C. Physical market
D. Virtual market
E. Factor Market
F. Labor Market
Which of the following is not a type of market based on commodities bought and sold?
A. Wholesale market
B. Bond market
C. Physical market
D. Virtual market
E. Factor Market
F. Labor Market
According to economists, a market refers to a/an _____ comprising of various buyers and sellers carrying out business transactions.
A. Place
B. Location
C. Entire area
D. Online platform
E. Avenue
F. Axis
Primary market is a type of market based on _____.
A. Market structure
B. Demand
C. Supply
D. Commodities bought and sold
E. Channel of distribution
F. Internet and world wide web
The above diagram on the quantity supplied against a change in price is _____.
A. Elastic
B. Inelastic
C. Perfectly Elastic
D. Perfectly Inelastic
E. Zero Elastic
F. Unitary Elastic
The rate at which an increase in the price of a product translate into the product's increased production and availability in the market is termed _____.
A. Demand
B. Supply
C. Demand Elasticity
D. Supply Elasticity
E. Demand Curve
F. Supply Curve
Concerning demand curve, which of the following statement is incorrect?
A. It is a graphical represention of a table showing the price of commodities and quantity demanded
B. It can be an individual demand curve
C. The x-axis shows the price of commodities
D. The price and quantity demanded are expressed on different axis of the graph
E. It can be a market demand curve
F. All the options are correct
Demand is one of the forces that govern the market system. The other is supply. It is important to state that price is a factor determined by demand and supply respectively.
Please read on supply, supply curve and law of supply here.
Everyone is always in demand for something at various points in their everyday life. For instance, you probably had demanded for data by your network provider before you could read this article on Len Academy.
Demand is defined as the willingness of a person, buyer or consumer to buy a specific quantity of goods or services at a given price and time.
Various professors have given their own version for the definition of demand. Common to their definitions is the ideology that: 'There is a desire supported by the ability and willingness of a buyer to pay for a particular product at a specific price and time'.
Please read on demand schedule here.
Below are definitions of demand from the perspective of some notable professors:
The demand for goods is a schedule of the amounts that buyers would be willing to purchase at all possible prices at any one instant of a time.
Professor Mayers
Demand is the various quantities of goods that would be purchased per time period at different prices in a given market.Professor Hibdon
The demand for anything, at a given price is the amount of it which will be bought per unit of time at the price.
Professor Benham
From the above definitions, we can infer that the definition of demand is referenced to three major factors. These are:
You can read on the graphical representation of supply curve here.
Note: Demand (sometimes called effective demand) isn’t the same as desire, want or need. This is true because the desired (which could be wanted or needed) goods and services may not be bought, especially due to the limitation by price and the availability of money at that point in time.
From the above explanation, we can therefore state that effective demand is the ability to pay for a product.
You can read on scale of preference and opportunity cost here.
Another term that exists is latent demand and derived demand.
Latent demand is when the buyer intends to buy goods or services but lacks the purchasing power; and as a result cannot buy the intended goods or services. Think of it as an unaccomplished demand.
Derived demand is a term used when the demand of a product is required because a related product had been purchased. For instance, If product A is related or connected to product B, the demand of product A will likely result to the demand of product B.
In the above instance, Product A could be mobile phones while product B may be SIM cards.
You can read on the concept and types of cost here.
The demand for a specific product in the market is governed by the law of demand.
The law of demand states that an increase in price will result to a decrease in the demand of a product while a decrease in price will result to an increase in the demand of a product, as far as other factors remains constant.
Meanwhile, understand that the law of demand holds true under the following assumptions:
Below is a graph that shows the Law of Demand for Wheat:
The law of demand remains valid in the sense that:
When given the choice of 2 similar products with the same price; (assuming all other factors remain constant or the same), you will prefer/choose to buy that with a lower price. This is the concept of Ceteris Paribus Assumption.
You can read on balance of payment deficit and balance of payment surplus here
According to the market structure, the buyers make up the demand side for a product while the seller constitutes the supply side of products.
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Amazing facts in Economics
NOTABLE POINTS IN Economics
Below are definitions of demand from the perspective of some notable professors:
The demand for goods is a schedule of the amounts that buyers would be willing to purchase at all possible prices at any one instant of a time.
Professor Mayers
Demand is the various quantities of goods that would be purchased per time period at different prices in a given market.
Professor Hibdon
The demand for anything, at a given price is the amount of it which will be bought per unit of time at the price.
Professor Benham
Generally, demand is defined as the willingness of a person, buyer or consumer to buy a specific quantity of goods or service at a given price and time.
From the above definitions, we can infer that the definition of demand is referenced to three major factors. These are:
Quantity of Goods Demanded
Price
Time
In economics, we have various types of cost. These are:
Accounting cost
Economic cost
Outlay cost
Opportinity cost
Fixed cost
Variable cost
Direct cost
Indirect cost
Sunk cost
Incremental cost
Private cost
Social cost
Please read the explanations on the aforementioned types of cost here
A Black market is said to take place when there is illegal buying and selling of goods and services.
Black markets usually take place outside the government's rader and without government's knowledge so as to avoid tax or any other government regulations.
Black market presents the avenue for government prohibited goods like hard drugs, war weapons and firearms to be bought by criminals.
A black market can also occur on the web for cyber criminals or those who are involved in computer hacking. To achieve their malicious aim, these individuals will go into the dark web and purchase or rent their respective hacking tools for a fee. Normally, payments are made in crypto currencies.
However, a black market isn't generally considered as bad. Infact, it has its advantages and disadvantages.
Below are some advantages of black market:
Goods and services are sold at a cheaper price.
It helps some people make plenty of money.
The illegal sales of human organs, for example, the sale of human kidneys have aided in saving some lives.
Some people actually depend on black market for their daily bread.
Some of the proceeds from black market may be utilized towards the economic growth of a nation. For instance, schools and hospitals had been built with money made from black market.
The law of supply states that:
The quantity of the supplied services or goods will increase as the price increases and they will decrease as the price decreases provided all other factors remain constant.
These constant factors are very important when stating the supply law. They include:
The price of input resources
The kind of technology used during production
The number of suppliers
The number of buyers; and so on.
A graph that shows the relationship between the price of a product or service, and its quantity supplied is the supply curve.
Supply curve can be defined as a graphical representation of the direct relationship between the prices of goods and services and the quantity supplied (of such goods and services) within a particular period of time provided all other factors remain constant.
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