MATCHING SUPPLY WITH DEMAND AN
INTRODUCTION TO OPERATIONS
MANAGEMENT COMPREHENSIVE STUDY SHEET
2026 SOLVED QUESTIONS PREMIUM BUNDLE
◉ competitive market.
Answer: many buyers and sellers acting independently, none of
whom can influence the price of the product
◉ demand.
Answer: the various quantities of a good/service the consumer is
willing and able to buy at different possible prices during a
particular time, ceteris paribus
◉ willing and able.
Answer: willing = consumer wants to buy the good
able = consumer can afford the good
◉ law of demand.
Answer: negative causal relationship between price of a good and its
quantity demanded over a particular time period, ceteris paribus
,i.e. as price increases, quantity demanded falls / as price falls,
quantity demanded increases
◉ marginal utility.
Answer: the extra benefit or utility to the consumer of consuming an
additional unit of output
◉ market demand.
Answer: sum of all individual consumer demands for a good/service
◉ shifts of the demand curve.
Answer: rightward shift of demand curve = more is demanded for a
given price = increase in demand
leftward shift of demand curve = less is demanded for a given price =
decrease in demand
◉ non-price determinants of demand.
Answer: income in the case of normal goods
income in the case of inferior goods
preferences and tastes
prices of substitute goods
prices of complementary goods
, demographic (population) changes, i.e. changes in the number of
buyers
◉ preferences and tastes.
Answer: product becomes more popular = increase in demand =
rightward shift of demand curve
product becomes less popular = decrease in demand = leftward shift
of demand curve
◉ prices of substitute goods.
Answer: substitute goods = goods which can be used in place of each
other, positive cross-price elasticity of demand
fall in price of good x = fall in demand of good y = leftward shift of
demand curve
rise in prise of good x = rise in demand of good y = rightward shift of
demand curve
◉ prices of complementary goods.
Answer: complementary goods = goods used in combination with
each other, negative cross-price elasticity of demand
rise in price of good x = fall in demand for good y = leftward shift of
demand curve
fall in price of good x = rise in demand for good y = rightward shift of
demand curve
INTRODUCTION TO OPERATIONS
MANAGEMENT COMPREHENSIVE STUDY SHEET
2026 SOLVED QUESTIONS PREMIUM BUNDLE
◉ competitive market.
Answer: many buyers and sellers acting independently, none of
whom can influence the price of the product
◉ demand.
Answer: the various quantities of a good/service the consumer is
willing and able to buy at different possible prices during a
particular time, ceteris paribus
◉ willing and able.
Answer: willing = consumer wants to buy the good
able = consumer can afford the good
◉ law of demand.
Answer: negative causal relationship between price of a good and its
quantity demanded over a particular time period, ceteris paribus
,i.e. as price increases, quantity demanded falls / as price falls,
quantity demanded increases
◉ marginal utility.
Answer: the extra benefit or utility to the consumer of consuming an
additional unit of output
◉ market demand.
Answer: sum of all individual consumer demands for a good/service
◉ shifts of the demand curve.
Answer: rightward shift of demand curve = more is demanded for a
given price = increase in demand
leftward shift of demand curve = less is demanded for a given price =
decrease in demand
◉ non-price determinants of demand.
Answer: income in the case of normal goods
income in the case of inferior goods
preferences and tastes
prices of substitute goods
prices of complementary goods
, demographic (population) changes, i.e. changes in the number of
buyers
◉ preferences and tastes.
Answer: product becomes more popular = increase in demand =
rightward shift of demand curve
product becomes less popular = decrease in demand = leftward shift
of demand curve
◉ prices of substitute goods.
Answer: substitute goods = goods which can be used in place of each
other, positive cross-price elasticity of demand
fall in price of good x = fall in demand of good y = leftward shift of
demand curve
rise in prise of good x = rise in demand of good y = rightward shift of
demand curve
◉ prices of complementary goods.
Answer: complementary goods = goods used in combination with
each other, negative cross-price elasticity of demand
rise in price of good x = fall in demand for good y = leftward shift of
demand curve
fall in price of good x = rise in demand for good y = rightward shift of
demand curve
