Quarterly Examination in Applied Economics

2nd Semester S.Y. 2021 - 2022

I. In the given situations below, analyze what will happen to the demand, supply, or price. Briefly explain
your answer for each item in two to three sentences only. (20 points)
1. It is the season where there is abundant supply of mangoes in the market and because of this what will
happen to the price of the mango?
2. The demand for surgical mask increased but the supply is limited. What will happen to the price of the
surgical mask?
3. Because the increase in demand for face mask, lots of many entrepreneurs produced different kinds of
mask (washable, disposable, one ply, double ply, with turban, different designs, etc.). what will happen to
the price of the face mask?
4. The milk tea shop in our barangay has lots of a large number of customers. Most of them buy the
product because of its taste and its affordable price. Then, one day, another milk tea shop opens near our
house offering the same milk tea products at the same price. What will happen to the demand for milk tea
in the first store?
5. There are different brands of coffee in the market, but I always prefer to buy my favorite brand until its
price increase by 10 %. What will happen to the demand for my favorite brand?
6. The manufacturer of a Product A now uses a new technology making their company more productive.
What will happen to the supply?
7. The demand for sugar does not increase and the same goes with the supply. What will happen to the
price?
8. During the typhoon, lot of fishponds were damaged? many fishponds were damaged. What will happen
to the price of fish?
9. Because of the pandemic, the tourism industry was affected. The number of tourists decrease. What
will happen to the demand for accommodation facilities?
10. Because of the existence of the internet and different apps we can now download songs and movies
easily. What happens to the demand for DVDs?

II. Answer and discuss each item in 5 to 10 sentences only. (30 points)
1. Differentiate Macroeconomics from Microeconomics. You may site cite examples to elaborate your
answer.
2. Discuss the basic economic problems of the society.
3. Discuss the factors that can cause changes in supply and demand.