APPLIED ECONOMICS

Quarter 1 Week 1 Activity Sheet

I. TRUE OF FALSE. Write TRUE if the statement is correct and write FALSE if the statement is wrong.
________1. Microeconomics is focus on the whole structure of economy.
________2. Prime commodities are the things (goods and services) that you really need.
________3. Law of Demand states that when the price is high, the demand will also increase
________4. Basic commodities are the things (good and services) you like to buy for yourself.
________5. Demand describes the total value of good or service that is available to consumers.
________6. People are migrating in search of greener pasture and to improve their standard of living.
________7. Supply is the value of goods and services that buyers are willing to purchase in every price.
________8. In the market, the buyer and the seller or supplier must know and see each other personally.
________9. Under the Law of demand, as price increases, the quantity supplied rises; as prices decreases, the quantity
supplied falls.
________10. Ceteris Paribus means that all other related variables except those that are being studied at the moment and
are held constant.

II. Analyze the effects of the non-price factors to the quantity demand. Shade your answer and provide a brief supporting explanation to it.
1. Population increases increases decreases
_______________________________________________________________________________________________
2. Income increases increases decreases
_______________________________________________________________________________________________
3. Celebrating a special occasion increases decreases
_______________________________________________________________________________________________
4. Taste and preference to a particular increases decreases
_____________________________________________________________________________________________
5. Oil price increase expectation today increases decreases
_______________________________________________________________________________________________

III. Analyze the effects of the non-price factors to the quantity supply. Shade your answer and provide a brief supporting explanation to it.
1. Increase of cost of production increases decreases
_______________________________________________________________________________________________
2. Develop advance technology in industries increases decreases
_______________________________________________________________________________________________
3. Increase of Tax by the government increases decreases
_______________________________________________________________________________________________
4. Oil price increase expectation today increases decreases
_______________________________________________________________________________________________
5. Only few sellers available in the market increases decreases

IV. Compute the Quantity Demanded of the following price, given that your Demand Function is Qd = 50 – 2P. Show your solution on the
space provided for or at the back.
Price Qd
6
8
10
12
14