Republic Central Colleges

Angeles City

Written Report
In
Applied Economics

Group 1
Singian Leticia Ann C.
Pinto Samantha Grace E.
Diaz Mary Grace
Rivera Ahron S.
Manaloto Clarence L.
De Jesus Kristine Joy
Valecia Kyra Trixie D
 The Philippine Socio-Economic Development of 21st Century

Agenda 21 is an action plan of United nation (UN) related to

sustainable development and was outcome of the United Nation
Conference on Environment Development (UNCED) held in Rio de
Janerio, Brazil in 1992, It is a comprehensive blueprint of action to be
taken globally, nationally and locally by organization of the UN,
governments, and major groups in every area in which humans directly
affect the environment.

It recognizes that sustainable development is primarily the

responsibility of governments, and this will require national strategies,
plans and policies. The efforts of nations need to be linked by
international cooperation through such organizations as the United
Kingdom. The broadest publication participation, and the active
involvement of the non-governmental organizations and other groups
should also be encouraged

THE PHILIPINE AGENDA 21

At the 1992 Earth Summit in Rio de Janerio in Brazil, over 160
countries, including the Philippines, pledged to pursue sustainable
development as embodied in Agenda 21. The global agenda attempt to
find the balance between development fueled by the rapid integrations
of nation into the world economy and the impacts of this process on the
environment and society

As a demonstration of this commitment, the Philippine

Government under the Ramos administration create the Philippine
Council for Sustainable Development (PCSD). Subsequently the
PCSD convened a nation-wide process to produce PA21. During the
consultations, it become clear that PA21, to be truly sustainable had to
find a creative respond to the opportunities and challenges of
globalizations.

Sustainable Development
Sustainable development is derived from "an image of society and a
share vision of the development path of that society" it takes off from
an understanding of the "state" of Philippine society and proceeds
towards an agreed upon development objective. Three key players
define the goal of development, namely, government, business and
civil society. Thus, to promote sustainable "there must be an interplay
of market forces, state intervention, and civil society participation.

Decision Making Major Groups Involvement

A resolution recognizing and advocating the lending participations
of NGOs and POs in the implementation of development programs and
project has been passed, the other major group of society for example
women, youth, indigenous, people, and communities have been
recognized as an equal’s partners in shaping, crafting, and
implementing development programs. They participate in all stages of
development.
Seven Dimension of Development
1. Spiritual Development- Unless the people see and explicitly
acknowledge the spiritual in nature, human beings and society in the
framework of development, the Filipinos can never do justice to the
strong sense Philippine.
2. Human Development- Existing measures of human development,
such as the Human Development Index (HDI), which are limited to
health, education and income, indicate some improvement over time.
3.Social and Cultural Development
 Promoting resource access and upholding property rights.
  Promoting environmental awareness
4. Political Development- Empowering the people
5. Economic Development- Maintaining a sustainable population
6. Ecological Development- Protecting the environment and
conserving natural resources
7. Principles of Sustainable Development
Hereunder are the different principle of sustainable development under
Philippine Agenda 21:
 Primacy of developing Full Human Potential
 Holistic Science and Appropriate Technology
 Cultural, Moral and Spiritual Sensitivity
 National Sovereignty.
 Gender Sensitivity
 Peace, order and National Unity
 Social Justice, Inter-Intra-Generational Equity and Spatial
 Sustainable Population
 Global Cooperation

The Philippine Agenda 21 Vision

The Philippine Agenda 21 envisions a better quality of life for
all Filipinos through the development of a just, moral, and
creative, spiritual, economically, vibrant, caring, diverse yet
cohesive society characterized by appropriate productivity,
participatory and democratic processes, and living in harmony
and within the limits of the carrying capacity of nature and the
integrity of creation.

 Property Reduction
 Social Equity
 Empowerment and God Governance
 Peace and Solidarity/
 Supply and Demand

Supply- In economics, supply is the amount of a resource that firms,

producers, laborer’s, providers of financial assets, or other economic
agents are willing and able to provide to the marketplace or directly to
another agent in the marketplace

Law of Supply- The law of supply is the microeconomic law that states
that, all other factors being equal, as the price of a good or service
increases, the quantity of goods or services that suppliers offer will
increase, and vice versa. The law of supply says that as the price of an
item goes up, suppliers will attempt to maximize their profits by
increasing the quantity offered for sale.

Example of Law Demand

Determinants of supply - also known as factors affecting supply, are

the factors which influence the quantity of a product or service
supplied. The price of a product is a major factor affecting the
willingness and ability to supply. Here we will discuss the determinants
of supply other than price. These are the factors which are assumed to
be constant in law of supply.

Following are the major determinants of supply other than price:

• Number of Sellers
• Prices of Resources
• Taxes and Subsidies
• Technology

Types of Supply
1. Market supply- is also called very short period supply. Another
name of market supply is ‘day-to-day supply or ‘daily supply’.
Under these goods like fish, vegetables, milk etc., are included.
In this supply is not made according to the demand of purchasers
but as per availability of the goods.
2. Short-term Supply - In short period supply, the demand cannot be
met as per requirements of the purchaser. The demand is met as
according to the goods available
3. . Long-term Supply- In this, if demand has been changed the
supply can also be changed because there is sufficient time to
meet the demand by making manufacturing goods and supplying
them in the market.
4. Joint Supply- Joint supply refers to the goods produced or
supplied jointly e.g., cotton and seed; mutton and wool. In joint
supplied products one is the main product and the other is the by-
product of its subsidiary. By-product is mostly the automatic
outcome when the main product is produced
5. Composite Supply- In this, the supply of a commodity is made
from various sources and is called the composite supply. When
there are different sources of supply of a commodity or services,
 we say that its supply is composed of all these resources. We
normally get light from electricity, gas, kerosene and candles. All
these resources go to make the supply of light.

Demand- in economics is the consumer's desire and ability to purchase

a good or service. It's the underlying force that drives economic growth
and expansion. Without demand, no business would ever bother
producing anything

Determinants of Demand- are factors that cause fluctuations in the

economic demand for a product or a service. A shift in the demand
curve occurs when the curve moves from D to D₁, which can lead to a
change in the quantity demanded and the price.

The five determinants of demand are:

• The price of the good or service.
• Income of buyers.
• Prices of related goods or services. These are either
complementary, those purchased along with a particular good or
service, or substitutes, those purchased instead of a certain good
or service.
• Tastes or preferences of consumers.
• Expectations. These are usually about whether the price will go
up.

Law of demand- governs the relationship between the quantity

demanded and the price. This economic principle describes something
you already intuitively know. If the price increases, people buy less.
The reverse is also true. If the price drops, people buy more.
Demand Schedule- is a table or formula that tells you how many units
of a good or service will be demanded at the various prices, ceteris
paribus. Here is an example of a demand schedule:

ELASTICITY OF DEMAND AND SUPPLY

Elasticity of demand- Percentage change in Quantity demanded
/Percentage change in Price.
Demand is called elastic if say, 10 percent rise in price leads to
reduction in quantity demanded of more than 10 percent. Demand
inelastic if such a rise in price reduces quantity demanded by less than
10 percent.

Elasticity of Demand- defined as the ratio of the percentage change in

quantity demanded to the percentage change in price that brings about
the change in quantity demanded.
Determinants of the Elasticity of Demand
1. Luxuries vs. Necessities- The demand for “necessities” tends to
be include inelastic the demand for “luxuries” tends to be elastic.
2. Proportion of Income- Other things being capital, the larger a
commodity shares in one’s budget, the greater will be the demand
elasticity for it.
3. Substitutability- The more substitutes there are for a commodity,
the greater the elasticity of demand
4. Time- The longer the interval of time considered, the more elastic
the demand for the commodity.

Elasticity of Supply- is measured as the ratio of proportionate change

in the quantity supplied to the proportionate change in price.

FORMULA:
Elasticity of Supply- Percentage Change in Quantity
Supplied/Percentage Change in Price.
While the coefficient for elasticity of supply is positive in values, it
may range from 0, perfectly inelastic, to infinite, perfectly elastic.

Price Elasticity of Supply- measured the responsiveness of quantity

supplied to a change in price. It necessary for a firm to know how
quickly, and effectively, it can respond to changing market conditions,
especially to price changes
Determinants of the Elasticity of Supply
1. Limited Amount of Raw Materials- the limited amount of raw
materials could limit the amount of a goods that can be produced.
2. Difficulty of producing goods- if the good is very difficult to
produce to the producer, it becomes more inelastic
3. Time period
a. Market Period- It is a period in which producers of a product
are unable to change the quantity produced in response to a
change in its price and in which there is a perfectly inelastic
supply
b. Short run- It is a period of the time too short to allow or
adjustments to plant (fixed plant assumptions). More labor
can be applied, but plant equipment is fixed

C. Long run- Producer has sufficient time respond to increase in price,

manufacturing firms can build new facilities, and allow entry and exit
from an industry. The elasticity of supply becomes more elastic
4. Production surplus- a producer with unused capacity will respond
immediately when price changes.
5.Ivventories- a producer with a large number of goods can quickly
increase the amount of supply it delivers to the market.