Lorenz E.

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GAS – 12

APPLIED ECONOMICS WEEK 3 OUTPUT

ACTIVITY 1
- Good companies will continuously provide the goods for consumer while ensuring its constant
quality. Great companies, on the other hand, strategically plan innovative solutions to produce a
greater supply that would create markets that offer improved services.

ACTIVITY 2
1. C
2. B
3. A
4. D

ACTIVITY 3

Price and Quantity Demanded of Gasoline

2.5

1.5

0.5

0
420 460 500 550 600 700 800

Price ($ per gallon)

1.
2. As the price arises, the demand for the product lessens. The curve shows a negative slope, the
line slopes downward to the right which indicates that the price and demand are negatively
related.

ACTIVITY 4
- In response to the COVID-19 outbreak, public health authorities around the world implemented
mitigation measures such as social distancing, which shut down entire sectors of the economy,
especially those that involve interpersonal contact, such as restaurants and salons. While
authorities have forced many such establishments to close, leaving many workers jobless, and
issued stay-at home orders which is called lockdowns; consumers also decreased their use of
these services.1 Furthermore, newly jobless workers reduced their consumption of all goods and
services.
For this reason, most economists would agree that the pandemic affects both the aspects of
supply and demand. The pandemic reduces the economy's capacity to produce goods and
services, at given prices. Lockdown measures prevents workers from doing their jobs; hence, it
affects the supply product. On the other hand, the current pandemic reduces consumers' ability or
willingness to purchase goods and services, at given prices. People avoiding restaurants for fear
of contagion is an example of a how the current pandemic affects the demand. Additionally, as
service sector workers lose their jobs and income, they stop purchasing all kinds of goods, such
as cars and appliances, which can also be thought of as a sectoral shock in demand.

ASSESSMENT
1. Law of supply and demand
2. Law of supply
3. Curve
4. Shift in a demand or supply curve
5. Equilibrium
6. Law of demand

REFLECTION
- I understand that demand curve is sloping downward due to the law of diminishing marginal
utility while the supply curve has an upward slope because as the price increases, the company
produce more. These two mentioned is the concept for the law of supply and demand.
Furthermore, there is an equilibrium point where the two sloes will intersect which means that
the market price is sufficient to induce suppliers to bring to market that same quantity of goods
that consumers will be willing to pay for at that price.
- I realize that analyzing the law of demand and supply as well as the equilibrium, will give us a
better understanding on marketing situations.
- I need to learn more about the effects of certain crisis on the demand and supply of an
economy; as well as how often an equilibrium could be achieved and the factors that may affect.