University of Caloocan City

College of Business and Accountancy

MANAGERIAL ECONOMICS
SUBJECT CODE: ECO 003
TOPIC: Demand and Supply
WEEK: 6
SUB-TOPIC/S: Concepts of Demand
Concepts of Supply

APPLICATION

1. Mia ia a loyal customer of Market A that sells fish in the market. Complete the table below for you to know the
demand of Mia for the product if there is a changes in price per kilo using demand and supply function as
follows:
a. Qd = 400 – 2P
b. Qs = 100 + 2P
PRICE QUANTITY DEMAND QUANTITY
SUPPLIED

300 -200 700

250 -100 600

200 0 500

175 50 450

150 100 400

2. What effect do you think the law of supply and demand has on your life? How supply and demand affects the
Prices of items they want, such as CDs, videogames, skateboards, and clothes, etc.
- The becoming effect of the law of demand and supply on my life I know if the demand for something is
high, the supply will also be high. Due to the increase in demand, the trader will be forced to increase the
supply to support the demand of the people. The selling price of an item can go up or down depending on
its demand.
- If there is an increase in supply for goods and services while demand remains the same, prices tend to fall
to a lower equilibrium price and a higher equilibrium quantity of goods and services. If there is a decrease in
supply of goods and services while demand remains the same, prices tend to rise to a higher equilibrium price
and a lower quantity of goods and services.