FRENCH CHE’YEN V.

CORTEL SOCSTUD

Intended Learning Activities

I. Figures A, B, C, D illustrate the effect of each of the following on the demand for
product X. Fill in the blanks.

(A)

_______1. An
increase in the
income of consumers, assuming product X is a basic commodity. D
_______2. The price of product of X increases. C
_______3. Consumer tastes change in favor of product X. A
_______4. An increase in the number of buyers.D
_______5. A fall in the price of product X.D
_______6. People expect that the price of product X will decrease next week.B
_______7. An increase in the income of buyers, assuming product X is an inferior
good.D
_______8. An increase in the price of product Y, a substitute of product X.A
_______9. A decrease in the price of product Z, a complement of product
(C)
X.B
_______10.The government (B) announces that the price of product
X will increase next month.A
II.A.

DEMAND SCHEDULE FOR T-SHIRTS

PRICE QD (units)

500 200
400 400
300 600
200 800
100 1000

A. 1. Column (1) represents PRICE while column (2) represents QUANTITY

DEMAND Columns (1) and (2) taken together is known as a DEMAND
schedule.

2. If the price of T-Shirts is P500, buyers would be willing to buy 200

units.

3. If the price of T-shirt decreases to P400, buyers would be willing to

buy 400 units.

4. As price goes down, the quantity purchase goes UP.

5. The quantity of a good buyers are willing to buy at a particular price is

called PRODUCT and the schedule showing the various quantities which
buyers are willing and able to buy at various prices is called.

6. The relationship between quantity demanded and price is stated in

the LAW OF DEMAND

7. Assuming all other things remaining constant, there is a

CORRESPONDING relationship between price and quantity demanded.
I. Figures A, B, C, D illustrate the effect of each of the following on the demand for
product X. Fill in the blanks.

(A)

A. 1. Technological advancement in the methods of producing product X.

2. An across-the-board increase in wages.
3. The government imposes new tax.
4. The price of product X increases.
5. An increase in the number of suppliers of product X.
6. A decrease in the price of raw materials of product X.
(B)
7. The sellers expect the price of product X to increase next week.
8. An increase in the price of product Y, a substitute of product X.
9. A fall in the price of product X.
(D)
10. A reduction in the price of production Z, a complement of
product X.
II.B.

SUPPLY SCHEDULE FOR ICE CREAM

PRICE QD (units)

100 20
200 32
300 45
400 48
500 60

A. 1. Column (1) represents PRICE while column (2) represents QUANTITY

Columns (1) and (2) taken together is known as SUPPLY schedule.

2. At a price of P100, sellers would be willing and able to sell 20 units

only.

3. However, if the price increases to P200, quantity supplied increases to

32 units.

4. Therefore, as price goes up quantity supplied goes UP and as price

goes down quantity supplied goes DOWN There is a POSITIVE relationship
between price and quantity supplied.

5. The relationship between price and quantity supplied is stated in the

LAW OF SUPPLY

6. The schedule showing the various amounts of goods and services

which the sellers are willing and able to offer for sale at various prices is
called SUPPLY SCHEDULE.
II.C.

Demand and Supply Schedule for Ballpen/week

PRICE QD QS

1.50 100 0
3.00 80 30
4.50 60 60
6.00 40 90
7.50 20 120

A. 1. Equilibrium price and equilibrium quantity are DETERMINED BY

THE MARKET DEMAND and SUPPLY OF COMMODITY.

2. If the P = 6.00, there would be a (surplus/shortage) of the commodity

equal to a 50 units.

3. If P = 1.50, there would be a (surplus/shortage) equal to _NO______

units.

4. A shortage exists at P1.50 and P3.00 price levels.

5. A surplus exists at P 6.00and P 7.50 price levels.

6. As P changes from P3.00 to P1.50 and QS changes from 30 to 0, there

has been a change in (D, QD, S, QS).

B. Graph the table above.

III. Graph the following conditions:

A. D↑ < S↓

B. D↑ , S

C. D , S↑