BSBA-Economi | Basic Microeconomics 

SUMMER SEM TER 2019 
INSTRUCTOR: Mr. Raymund Malapitan 
 

April - May 2019 

ECONOMICS 
- A Social Science which deals with human behavior towards Production, 
Consumption and Distribution with proper allocation of scarce resources 
to satisfy the unlimited needs and wants of man. 

TYPES OF RESOURCES:  TYPES OF DEMAND: 

● Limited resources  ● Needs 

● Unlimited Resources  ● Wants 

TYPES OF PRODUCTS:  PROPER ALLOCATION must be: 

● Goods  ● E ective 
● E cient 
● Services 

FACTORS OF PRODUCTION 
❏ Capita   ❏ Labor 
- It is Used to produce another  - The time and effort exerted in the 
product.  process of production. 

❏ Lan   - HUMAN ATTRIBUTES:

- Natural resources.  - Intellectual Attributes 
❏ Entrepreneurship  - Emotional Attributes 
- The product in Combining ideas with 
- Spiritual Attributes 
another factor. 
- Physical Attributes 
 

 
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MICROECONOMICS 

- A portion of a whole and an economic unit a ecting its own industry. 

Government  Firm 

- can only operate by means of taxes.  - Represents di erent types of industry. 

Regulates the society by services and 
Resource Market 
infrastructure. Exists because of the things 
the household demands.  - May not be identi es as a speci c place. It is 
just a thought or an idea that it exists where 
Household 
the resources are available. 
- Pays the gov’t personal taxes, service and 
infrastructure. 

 
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Product Market 
● Invisible market: ● Physical/Structural Market
○ imparted as a Principle, exists when  ○ A place, facility or infrastructure 
a seller and a buyer meet and  where the product is present. 
transact business but only the idea  ■ Perfect Competition 
is present and the product may not  ■ Oligopoly 
be. ■ Monopoly 
■ Monopolistic Competition 

 
LAW OF DEMAND 
3 Statements to Remember!  Determinants of Demand: 
★ If the Price of the commodity goes  ➔ Income 
down, the Willingness to buy goes  ➔ Population 
up.  ➔ Taste 
★ The relationship between Price and  ➔ Consumer’s Future Expectations 
Quantity is negative,  ➔ Change in the Price of related 
opposite/inverse.  goods*(Substitute & Complementary) 
★ Ceteris paribus*all things remain constant 

Law of SUPPLY
3 Statements to Remember!  Determinants of Demand: 
➔ Change in the number of 
★ If the Price of the commodity goes 
Producers 
down, the Willingness to produce 
➔ Change in the price of Raw 
goes up. 
Materials 
★ The relationship between Price and 
➔ Producer’s Future Expectations 
Quantity is positive, 
➔ Technological Improvement 
direct/immediate. 
➔ Change in the Price of related 
★ Ceteris paribus*all things remain constant 
goods*(Substitute & Complementary) 
 

 
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❏ PRICE CEILING 
Price Tools  - a legal maximum price that 
can be sold to the market. 
- used bY the Gov’t to intervene Causes shortage. 

with the irregular market ❏ PRICE FLOOR 

- a legal minimum price that 
price. Only a temporary
can be sold to the market. 
market price.  Causes surplus. 

 
  

 
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