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APPLIED ECONOMICS
(Quarter 3, Module 4)
II. Pre-Test
Multiple Choice: Encircle the letter that corresponds to the correct answer.
Review
Directions: Compare the price below of the basic commodities and answer the proceeding
questions.
1 Sack 1 Sack
Rice Corn
1. With the two variety of rice shown above, which will you prefer? A sack of rice priced
at 2,400 or a sack of corn priced at 2,000? Why?
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2. What are the things will you consider when buying products?
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Discussion
Price of basic commodities
Commence with of commodity is any tangible item that can be bought and sold.
Like an oil, rice, fruits, vegetables and meat. Price will be affected to the demand of the
commodity of the consumers. When there will be rise of price of chicken meat also there will
increase of price in a beef. It is called as substitute goods. However, when there is low
stock of rice there will be higher increase of price of a corn is it called as complement
goods. The basic prices of commodities will be affected on supply and demand of a
particular good.
Talking about supply and demand that if the price increases the demand decreases
while decreasing the price if the supply increases. Demand is the consumer what they
needs however supply is the product the consumer needs. Look at the diagram below on
the cycle of supply and demand.
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Supply
CYCLE OF LAW OF
SUPPLY AND
DEMAND
Demand
There are things that you want to buy like cell phone, laptop, tablet, and any gadgets
you love to buy. Delicious food you can buy in the mall and in the market. You want to buy
wonderful dresses and stylist shoes. You want expensive cars and motorcycle that fit your
convenience. However there things you buy for daily needs like rice, meat, beef, fruit, and
vegetable.
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Basic commodities is different in prime commodities, basic commodities is the thing that
you really need while prime commodities the things you like to buy for yourself.
Example:
Basic Commodities:
o Firewood
o Charcoal
o Cooking oil
o Salt
Prime Commodities
o Cell phone
o Cars
o Tablets
o Laptop
Equilibrium is a state of balance when demand is equal to supply. The equality means that the
quantity that sellers are willing to sell is also the quantity that buyers are willing to buy for a price.
As a market experience, equilibrium is an implicit agreement between how much buyers and
sellers are willing to transact. The price at which demand and supply are equal is the equilibrium
price.
The price of a good in the market is the equilibrium price. It is the price at which
the quantity demanded is equal to the quantity supplied. This is how most commodities in the
market are priced by their producers or sellers.
Market equilibrium is attained when the quantity demanded is equal to the quantity supplied.
Qd = Qs
Product Price
1. Higher Demand
2. Lower Demand
3. Higher Supply
4. Lower Supply
1. Substitute goods are typically consumed together.
Student’s
explanation:
2. When income rises, the demand for the product will increase, when income falls, the
demand for the product will decrease.
Student’s
explanation:
Activity 1.2: Directions: Compare the following commodities and write the Basic
Commodities and Prime Commodities in separate column.
o Firewood
o Cars
o Tablets
o Cell phone
o Salt
o Laptop
o Charcoal
o Cooking oil
V. Generalization
VI. Application
Directions: Provide your own ideas regarding the given statement below.
1. Cite specific products that you will still buy even though the price will increase. Why?
2. Cite specific products that you will not buy if the price will increase? Why?
3. How does the price of the product influence your buying decision?
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VII. Assessment
Multiple Choice: Encircle the letter that corresponds to the correct answer.
Richille G. Sevilla– T1
Don Emilio Canonigo Senior High School
( Co - writer )
EDGAR GONZAGA
Education Program Supervisor in MATH
(Content / Language Evaluator / Reviewer)
MERLY J. OMAMBAC
Quality Assurance Team
Education Program Supervisor in LRMDS
(Language Evaluator / Reviewer)
BENIGNO S. GONZAGA
Division Illustrator (Designate)
(Lay-out Artist / Evaluator)
Item No. 2 VERY informative Average informative Less informative but has
and has lots of ideas and has of ideas of ideas
TOTAL SCORE
10 / 10
Activity 1.2
II. GENERALIZATION
RUBRICS
POINTS 15 13 10
CONTENT : IDEAS / VERY informative Average informative Less informative
THOUGHTS and has lots of ideas and has of ideas but has of ideas
III. APPLICATION
RUBRICS
IDEAS / THOUGHTS
POINTS 5 3 2
Item No. 1 VERY informative Average informative Less informative but has
and has lots of ideas and has of ideas of ideas
Item No. 2 VERY informative Average informative Less informative but has
and has lots of ideas and has of ideas of ideas
Item No. 3 VERY informative Average informative Less informative but has
and has lots of ideas and has of ideas of ideas
TOTAL SCORE
15 / 15
IV. ADDITIONAL ACTIVITIES
RUBRICS
POINTS 15 13 10
CONTENT : IDEAS / VERY informative Average informative Less informative
THOUGHTS and has lots of ideas and has of ideas but has of ideas
References:
Book
• Rosemary P. Dinio, PhD and George A. Villasis. 2017. Applied Economics First Edition.
Quezon City: Rex Book Store Inc., 2017.
• Elsa T. Silon; Ramon A. Bernardo and Melani C. Quilloy. 2009. Manual for Economics with
Work Exercises. Manila: Rex Book Store, Inc.