ASSUMPTION SCHOOL-PASSI CITY, ILOILO, Inc.

Saligumba Street, Passi City, Iloilo

Gov’t. Recognition Nos.: SR-028, S. 2014; ER-098, S. 2014; ER-097 S. 2014
Tel. # 311-6263/5245
S. Y. 2021 – 2022

LEARNING ACTIVITY SHEET NO. 3

First Semester (Midterms) – Applied Economics 12

Name: _________________________________________ Grade and Section: __________________

Timeline: _______________________________________ To be submitted on: __________________

Topic: MARKET PRICING IN ECONOMIC DECISION MAKING

Learning Competency/ies: At the end of this lesson, you will be able to determine the implications of market
pricing on economic decision-making.

DAY 1
Topic: Market Price

Concept:
In the previous lesson, we used the demand and supply model to explain how market prices emerge
from the interactions of buyers and seller who are making choices under conditions of scarcity. We learned that
market prices tend to move toward their equilibrium level. If the price is below equilibrium, there is a shortage
and price adjusts to eliminate the shortage. If the price is above equilibrium, there is a surplus and price
adjusts to eliminate.
Today we will discuss another interesting topic about market pricing and how it affects economic
decision-making. What is market price/pricing and how does it affects the economic decision-making? Let’s
find out. Read and study your hand outs entitled “Market Price”. Then, watch the video on this link
https://youtu.be/vjpMvNTLYOQ about “Price Ceiling and Price Floor”.

Activity: Market Price Latest Update

Directions: Research on the previous and latest update of market price of the following products/services
below and discuss how it affects you as a customer/buyer.

Product Previous Price Latest Price

Rice
Vegetables
Meat (Pork)
Fare (public vehicle)
How it affects me as a customer:
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

Processing Questions:
1. Why does market price matter?

2. Why would the government impose a price ceiling?

Assumption Passi: A home where YOU can be your BEST!

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 3. What would be the effect of price ceiling in the Philippine government especially today that we are
facing a Covid19 pandemic?

DAY 2
Topic: Making Economic Decisions

Concept:
When we hear the term “economics,” we tend to think about ups and downs in the economy as well as
graphs mysteriously depicting supply and demand. In reality, economics is a vitally important subject because
it is the study of making choices. More specifically, it is the study and practice of making choices in a world of
limited resources (scarcity). You cannot go for a day without making economic decisions. For this reason, an
understanding of economic thought makes you a more successful citizen.
Decision making is the process of making choices by identifying a decision, gathering information, and
assessing alternative resolutions. It is the process of identifying alternative courses of action and selecting an
appropriate alternative in a given situation.
To understand further, read your hand out entitled “Making Economic Decisions”. Then, watch the
video in this link https://youtu.be/njTKa-dnJPo entitled “How Price Mechanics Help Us Make Decisions”.

Activity: Situational Analysis

Study first this situation. Ynna is thinking about quitting her job and doing what she always wanted to
do. She always wanted to start and operate her own business. But, every time she thinks of quitting, she is
reminded of her 20,000 monthly salary at a call center. What advice can you give to Ynna? Pen down your
suggestion below.

Suggestions:

Processing Questions:
1. How do prices help us make decisions?

2. How does supply and demand affect the market pricing of a business?

Assumption Passi: A home where YOU can be your BEST!

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References:
 Rosemary P. Dinio, PhD, George A. Villasis (2017)), Applied Economics, Teacher’s Resource Material,
First Edition, Rex Book Store, Inc. (RSBI)
 Rosemary P. Dinio, PhD, George A. Villasis (2017)), Applied Economics, First Edition, Rex Book Store,
Inc. (RSBI)
 https://youtu.be/njTKa-dnJPo
 https://youtu.be/vjpMvNTLYOQ

Assumption Passi: A home where YOU can be your BEST!

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