Republic of the Philippines

Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF SAN PABLO CITY

APPLIED ECONOMICS
Quarter 1-Week 3

Name of Learner
Grade level and
Section
Date

TOPIC

Learning Competency with code

Analyze market demand, market supply and market equilibrium
ABM_AE12-Ie-h3
Learning Context

Market Demand, Market Supply, and

Market Equilibrium

Economics helps us solve the problem on excess supply and excess

demand, and lead it to a balanced supply and demand. In our needs, we do not
want oversupply. It means wastage of income. For entrepreneurs, it is not efficient
if their stocks or supplies are greater than the actual demand. It is a loss not
revenue.

In economics, there are terms that you must learn to understand the
better market situations. A demand or the amount of good or service consumers
are willing to purchase at each price. If customers cannot pay for it, there is no
effective demand. Price is what a buyer pays for a unit of the specific good or
service. The total number of units purchased at that price is called the quantity
demanded.
Law of Supply and Demand

The law of supply and demand explains the interaction between the
sellers of a product and the buyers. It shows the relationship between the
availability of a particular product and the desire (or demand) for that product
has on its price.
REMEMBER
What Provision

 A demand curve shows the relationship between quantity demanded and

price in a given market on a graph.

 The law of demand states that a higher price typically leads to a lower
quantity demanded.

 A supply curve shows the relationship between quantity supplied and price
on a graph.

 The law of supply says that a higher price typically leads to a higher
quantity supplied.

 The equilibrium price and equilibrium quantity occur where the supply and
demand curves cross.

 The equilibrium occurs where the quantity demanded is equal to the

quantity supplied.
  If the price is below the equilibrium level, then the quantity demanded will
exceed the quantity supplied.
 Excess demand or a shortage will exist. If the price is above the equilibrium
level, then the quantity supplied will exceed the quantity demanded.

Learning Tasks 1:

Learning Task 1. The Law of Demand and Supply

Learning Task 2. Problem Solving
Learning Task 3:
Scoring Rubric for Learning Task 3 (if needed)
4 Ideas were substantial, precise with distinct knowledge of the topic and evident
control of usage and sentence formation.
3 Ideas were sufficient, with adequate knowledge of the topic and sufficient
control of usage and sentence formation.
2 Ideas were insufficient with limited knowledge of the topic with limited usage
and sentence formation.
1 No evident knowledge of the topic and minimal control usage and sentence
formation.
Reflection
Write your personal insights in your journal about the lesson using the prompts
below:

I understand that__________________________________________________________.

I realize that ______________________________________________________________.

References for learners

Prepared by: CYREL R. OCFEMIA

WRITER

Reviewed by:
_____________________________
Learning Resource Evaluator
(Master Teachers, Subject Specialist)

_____________________________ __________________________
School Head Public School District
Supervisor

_____________________________ __________________________
Education Program Supervisor (Subject) Education Program Supervisor
(LRMS)

Approved by:
_____________________________
CID - Chief Education Program Supervisor