Abm Applied Economics 12 q1 w3 Mod3
Abm Applied Economics 12 q1 w3 Mod3
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Before starting the module, I want you to set aside other t asks
that may disturb you while enjoying the lessons. Read the simple
instructions below to successfully enjoy the objectives of this kit.
Have fun!
2
LESSON
3 Market Demand, Market Supply, and
Market Equilibrium
EXPECTATIONS
You will represent real-life situations using the market demand, market
supply and market equilibrium. Specifically, this module will help you to:
Directions: Please analyze the graph and answer the questions below.
Great, you finished answering the questions. You may request your facilitator to check
your work. Congratulations and keep on learning!
Identification. Identify the following problems that may exist in the local and
global economies during production of goods and services. Choose from
the factors below. Just write the letter.
In economics, there are terms that you must learn to understand the
better market situations. A demand or the amount of good or
service consumers are willing to purchase at each price. If customers cannot
pay for it, there is no effective demand. Price is what a buyer pays for a
unit of the specific good or service. The total number of units purchased at
that price is called the quantity demanded.
The law of supply and demand explains the interaction between the
sellers of a product and the buyers. It shows the relationship between the
availability of a particular product and the desire (or demand) for that product
has on its price.
The Law of Demand
If all other factors remain equal, the higher
the price of a good, the fewer people will
demand that good. For example, if the price of video
game drops, the demand for
“the higher the price, games may increase as more
the lower the quantity demanded” people want the games.
and vice versa.
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The supply curve is a vertical line; overtime, supply curve slopes upward; the
more suppliers expect to be able to charge, the more they will be willing to produce
and bring to market.
In the Equilibrium point, the two slopes will intersect. The market price is
sufficient to induce suppliers to bring to market that same quantity of goods that
consumers will be willing to pay for at that price.
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ACTIVITIES
https://www.nytimes.com/2011/08/07/business/economy/marriage-and-the-law-of-supply-and-
demand.html
1. Under the dowry system in India, a market with more women seeking
partners, the trade shift favors the men. What law or economic principle
is applicable?
.
2. In the same system, men with better jobs receive larger payments. What
economic principle is applicable to this situation? Justify your
answer.
Directions: Analyse this problem. The following data were taken from
an invoice of Company X. The company imports gasoline from other country.
Price
Qd
Figure 1. Price and Quantity Demanded of Gasoline
Legend: P – Price; D- Demand; Qd –Quantity Demanded
.
Learning Module for Business Mathematics
Pric Supply of
e Gasoline
($ per (millions of
gallon) gallons)
1.00
1.20
1.40
1.60
1.80
2.00
2.20
Table
2. Price
and
Supply
of
Gasolin
e
Qd
g
F e
n
i d
g :
u
P
r
e –
1 P
r
. i
c
T e
a ;
b S
l -
e
S
u
2 p
. p
l
P y
;
r
i Q
c d
e –
Q
a u
n a
n
d t
i
S t
u y
p D
p e
l m
a
y n
d
o e
f d
Qd
Figure 3. The Equilibrium Price
b) How much is the price in the equilibrium point? Present your solution here.
Solution:
Answer:
Sources: https://opentextbc.ca/principlesofeconomics/chapter/3-1-demand-supply-and-equilibrium-in-markets-
for- goods-and-services/
REMEMBER
What Provison
1.The upward slope of the supply curve illustrates the law of demand—
―higher price leads to a higher quantity supplied, and vice versa‖.
2.The downward slope of the demand curve illustrates the law of
supply—the inverse relationship between prices and quantity demanded.
3.Time is important to supply because suppliers must react quickly to
a change in demand or price.
4.A shift in a demand or supply curve occurs when quantity demanded
or supplied changes even though price remains the same.
5.The law of supply says that ―at higher prices, sellers will supply
more of economic goods‖.
10. If Toyota firm is producing a car faster than people want to buy, there is
a. an excess supply of car and price can be expected to decrease.
b. an excess supply of car and price can be expected to increase.
c. an excess demand of car and price can be expected to decrease.
d. an excess demand and price can be expected to increase.
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Directions: Analyze the problem carefully. In December, the price of ―hamon‖ rises
and the number of ―hamon‖ sold also rises. Is this a violation of the law of demand?
Justify your answer.
Learning Module for Business Mathematics
www.kahanasunset.com
.
Learning Module for Business
Mathematics
E-
SITES
To further explore the concept learned today and if it possible to connect the
internet, you may visit the following links:
https://www.slideshare.net/lntrullin/supply-and-demand-
1184484
https://www.ducksters.com/money/supply_and_demand.ph
p
REFERENCES
Articles
Amadeo, K. (2020) Elastic Demand: Definition, Formula, Curve, Examples.
Retrieved on Jun 03 2020 from https://www.thebalance.com/elastic-demand-
definition-formula- curve-examples-3305836;
https://www.thebalance.com/inelastic-demand- definition- formula-curve-
examples-3305935
Websites
https://opentextbc.ca/principlesofeconomics/chapter/3-1-demand-
supply-and- equilibrium-in-markets-for-goods-and-services/
https://www.investopedia.com/ask/answers/041615/what-are-some-
examples-law- demand-real-markets.asp
https://www.ducksters.com/money/supply_and_demand_examples.php
https://www.thebalance.com/shift-in-demand-curve-when-price-
doesn-t- matter-3305720
https://www.investopedia.com/ask/answers/012915/what-difference-
between- inelasticity-and-elasticity-
https://www.sparknotes.com/economics/micro/elasticity/problems/
Learning Module for Business Mathematics
Name
Teacher
Learning Module for Business Mathematics
Solving and Critical Thinking
Analysis
n Directions: Analyze this diagram below. “In the goods market, no
seller would be willing to sell for less than the equilibrium price.”
Date
State and explain the theory related to this statement. Note: The
School
chart is your reference for your answer.
Workshee
t
(Additional
Activity)
P
r
o
b
l
e
m
https://www.slideshare.net/shufflejoy000/the-law-of- supply-and-demand