Worksheet 2

txercise 2. Demand: Definition, Determinants, and Elasticities

Name brkda Mane P Mymh em Scrton

llustrate the demand curve for the follow ing t Label the graph properl
Inclastic Demand

O
blastieDemand Demend

Unitary IDemand
Denand

Demard
When the price of a buri bag increased from PhP300 to PhP320. quantity demanded ti
from 100 to 80 units. Based on this, the price elasticty (F) of bur1 hay as compureds
2 85 Given the final answer, show your computation in the bov below Alse enplan h
meaning of a -2 85Ep, Is the demand elastic, inelastic.or a unntary

p: Chang iqanh hy drmanded 1Aad (01-a0/.( R

7thongt in pnu AP (P P (A20-A

he pnc thuhjhy of denandu hu means hat A 17 i e a e

in
pne ill cavsea 37. incease in qvanhhy demaned the demaad
itr pnu tla1huhi akiolu valve
bubog u inelashu becavit
mone than . but not inhaik

1
3 Bamboo is currently sellingbamboo products such as watches, toothbrushes, and straws.
He decided to increase the price of his bamboo watch from PhPI,500 to P1,800. As a
result, the quantity demanded per month fell from 100 to 80. Determine the price
elasticity of the demand for bamboo watches and explain the value and identify the type
of elasticity.

Ep changse ia quarhny denarcled -1ARd -(,-Q,/0g (S0-100e

1.
Chonge in pnt 7, AP
(-Po/P (1900-oo/Asoo

The pnc clarhuhy df demand . hu means that 17. inuease

In will
p cauue a 7. inwease in quanhhy demanded The demand
f hamboo pmducis 1s vnitarybecaue The qvanity demand i
egual to th change in pre and its pnu elnrhuuty has an abtoluk
value of

4. Law of Demand

Use the data presented in the Demand Schedule for bamboo bikes to graph the demand
curve in the chart below. Make sure to graph the demand curve properly with appropriate
labels
Demand Curve
Demand Schedule for
bamboo bikes
Price per Quantity
demanded700
bamboo
bike (in
pesos)
1800 20 14D0
1700
1600
30
40
P200
1500 50
1d
1400 60
1300 70
1200 80 0 40 GO
-----************
70 - - - --- *****

1100 0 - **

Qvankiy Demanded
1000 100
 and quantity demanded based on your graph
splain the relatomhipof pruc
Poued nthe graph ha (ane p with, inrtuely pnpnhenaM A
tdahonhip bewen pn ond yvankhy dtmand When He pna hi
the qvanhy domand l

Shift in the Demand C'urve

Manila copul or Almaepa resn has been one of the widely traded non-tumbcr forest
products in the country The deand for Almaciga resin s shown in the demand schedule
as Di Flowever, an inercase m the production of synthetuc resins has been oberved in
the past year offered at a priee lower than that of Manila copal's Demand for Manila
coul decrcasex as indcated by )2 in the demand schedule below

Pice per of manila

Demand Schedule for Manila Copal
kg copal Quantity Demandecd I (D)) uantity Demanded 2
(D2)
30 75
2000 150
8 3000 200
400 300
( 500 400
600 500
700 600
800 700
900 800
21 1000 950

Using the data presented in the demand schedule, graph the demand curves DI and D2
below

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Answer the following questions:

a. Compare the quantity demanded for Manila copal at demand levels DI and D2 when
the price of Manila
copal was PhP28.00 per kg.
Wher
Wher ho pru of monila apal pets per klogram, he qvanh ry
CANghtat dem and kvel DI u greakw han domand lwc D
b. Explain why less customers are now willing to purchase Manila copal
hRd e avanhh demaned I higkar Aan 4Vanhiy dunaded
acuNg ar nn Miling v
purchase aniln wpal cwu h
Cwmp-thun, chean rkn
prduth on. hnd or_new oki ta_pnwkin
kh isynhhe rujas Ftad Iww pniu han Manila
pal
C When demand decreased at all price levels, the demand curve shifts in which
direction: Left or Right? eft

d. Explain the difference between increase in demand and increase in quantity

demanded. Which of the two is depicted as a movement along the demand curve and
which one is depicted as the shift in the demand curve?
n inutae in dtnard v d atnhal inatase in the numbu ofppk who
M wCah 1nktukdin buying_a pndnlt at
i hvsai pru wherAA_An
1AUrA In e _quanhihy Aènandtal an inutnlt in he purdhak fen
uct a an whmt a pnu indtae t_change in he qvant h denandtd indicits
aninutas In dtmand, whild tmnt alinq demand whve indiuatsan in
Crast In amnnt Mded