Applied Economics

mod 2
WHAT I KNOW
1. B
2. A
3. B
4. C
5. A
6. D
7. C
8. B
9. C
10. A
11. A
12. A
13. C
14. B
15. D

LESSON 1
WHAT’S NEW

Supply Law Quantity

Demand Goods Equilibrium
D O S M Market
I C M I C S E R Price
V I C E S T Services
H G R M U N D L
E B I H G G H S D E Q W E R T A U Y O L G A W H E A
M W N J F F J A F D Q U A N T I T Y U S B R R Y R W
A T G K D D K Q WS W A C R E K J D A U Q K T G T A
N Y U L S S L W S U P P L Y U E G R N J U E G T T S
D O L P R E L A T I V E A B U T M A N C A T L D H D
N P A O Z A P E H F T S B Q I T D A I H N T Z O G F
L E Q U I L I B R I U M M O T J J R F T U S G G F
K N I U C X I T K R U F M A P H U B I K I Y F L G Y
G O O D S E E I B N O H K D K P R I C E F C E R E J

WHAT’S MORE
1.
 (A) Increase
 (B) Decrease
2.
 (B) Decrease
 (A) Increase
3.
 (B) Decrease
 (A) Increase
4.
 (B) Decrease
 (A) Increase
5.
 (B) Decrease
 (A) Increase

WHAT I HAVE LEARNED

DEMAND SUPPLY SCHEDULE

Demand Supply Price
38 19 1
36 23 2
34 27 3
32 31 4
30 35 5
28 39 6
26 43 7
24 47 8
22 51 9
20 55 10

LESSON 2:
WHAT’S NEW
1. S
2. S
3. D
4. S
5. D
6. D
7. S
8. D
 9. S
10. S

WHAT’S MORE

1. An increase in the price of inputs leads to a decrease in supply.

An increase in demand will cause an increase in the equilibrium price and quantity of a good. The
increase in demand causes excess demand to develop at the initial price.

2. If there are more producers in the market, there will be a larger supply of
products/services.
Companies will be able to produce more products/services as their productions of goods will expand.
It will be a lot convenient for the consumers while the producers will gain from it.

3. The increase in the level of production technology will increase supply.

Technological advances that improve production efficiency will shift a supply curve to the right. The
cost of production goes down, and consumers will demand more of the product at lower prices.

4. Substitute goods are typically consumed together.

When the basic commodities rans out, the substitute goods will be in front because they have
the same purpose.

5. When income rises, the demand for the product will increase, when income falls, the
demand for the product will decrease.

There is a positive relationship between a consumer's income and the amount of the good that
they are willing and able to buy for most goods. In other words, as income rises, so does
demand for these products; as income decreases, hence does demand for these goods.

WHAT I HAVE LEARNED

1. I now understand how the seller’s price their products and wouldn’t judge it just because it couldn’t
afford it. This module enlightens me more regarding the relationship of supply and demand.

2. You were so excited to buy the things that you wanted because you heard from a friend that it was
on sale, but then when you were about to buy it, you noticed that the price have already actually risen,
and so what you did was not buy it but instead find another item similar to the things that you want
for a lower price.

3. Corn crops are plentiful throughout the year, and there is more corn than people would normally
buy. To get rid of the excess supply, farmers must lower the price of corn, reducing the price for
everyone for everyone to be able to afford it

ADDITIONAL ACTIVITIES

I.

1. Changes in expectations
2. Changes in price of other goods
3. Changes in resources price
4. Changes in taxes & subsidies
5. Changes in technology
6. Changes in number of suppliers

II.

1. Changes in buyers
2. Changes in income
3. Changes in Buyer tastes
4. Changes in price of related goods
5. Changes in expectations

LESSON 3

WHAT’S NEW

1. I prefer the sack of rice because that’s what I eat every day, and I cannot live without it. The P400
price difference doesn’t matter because I like to buy it.

2. First, the price. What I mean is that, if the expensive product has a much better quality than the
cheap one then that’s fine with me because what’s the use of buying the cheap one if it wouldn’t even
last for a day.
WHAT’S MORE

1. Increase
2. Decrease
3. Increase
4. Decrease

WHAT I HAVE LEARNED

1. I will still buy the daily necessity products because we need them despite of the price inflation.

2. There’s a difference between the products you want, and you need. Since I’m just a normal citizen
that still couldn’t afford luxury products, I’ll stick to the products that I know it’ll be consumable.

3. Most customers prefer products that are both useful and inexpensive. As a result, if a product is
affordable, many people will buy it.

ADDITIONAL ACTIVITIES

BASIC COMMODITIES PRIME COMMODITIES

Cooking Oil Cars

Salt Cellphone

Charcoal Laptop

Firewood Tablets

WHAT’S IN

P R I C E M A R K E T A V B E C E D R P S T S S E S
B S A D G O Q A S B T M A R K E T S T R U C T U R E
C C V E E N O N E I O L O R A S B A D I A S B E D C
A G R T Y O L I G O P O L Y C E U A B C C E D B C E
A E E R A P A G H R R E E S O E Y A F E E C S E S S
M O N O P O L I S T I C C O M P E T I T I O N B R E
O A D A L L A B E A V A M A P A R A R A A N A N E R
 C S C V A B N M L O A B O S E V S S I K B S B O N I
E S A S Y A C T L E L L N V T B P R V E L U C T E U
C B U Y E R S H E O R E 0 B I C O V A R E M D H R O
F M E B R R R E R A Y T P E T E W T L E B E E N M S
I E B B S I J I N M R T O R I E E B R R N R F M I L
R P L A Y E R S R I O U L T O R R N Y E O H G L N Y
M E E S E R E A S E R E Y S N T E R E N P E N O D E

WHAT’S NEW

1. Price Market - is the current price at which a good or service can be purchased or sold.
2. Market Structure - refers to the nature and degree of competition in the market for goods and
services.
3. Oligopoly - a market characterized by a small number of firms who realize they are
interdependent in their pricing and output policies
4. Monopoly – a market structure characterized by a single seller, selling a unique product in the
market
5. Buyers - a person who is buying something or who intends to buy it.
6. Consumers - a person who buys and uses up goods.
7. Seller- an individual or other entity that offers a good, service, or asset in return for payment.
8. Monopolistic Competition - an industry in which many firms offer products or services that
are similar substitutes.
9. Players - are the most productive people in the organization.
10. Buyers Power - a situation when buyers have more control than the people who are selling
11. Firm - an organization which sells or produces something, or which provides a service which
people pay for.
12. Market – a place where buyers and sellers can meet to facilitate the exchange or transaction of
goods and services
13. Rivalry - a situation in which people, companies, products, etc. are competing
14. Price Taker - a producer who has no power to influence prices.
15. Competition - a contest in which all who take part strive for the same thing

WHAT’S MORE

1.
2.

3.

4.

LESSON 5

WHAT’S NEW

1. Migration
2. Unemployment
3. Rate Exchange
4. Peace and order
5. Oil Price Increases

WHAT’S MORE

1. It’s because the goal of an entrepreneur is to sell their products and for them to do that, they need a
perfect location to promote their brand to their customers. Since the mall has a better potential to have
a possible buyer, they commonly take it as an option.
2. Taxes help the government fund their projects for economic development. It's also the lifeblood of
outstanding government employees, like teachers. Contributing your share of the pie greatly helps in
the development of the Philippines as a whole.

3. A salary (or wage) is a fixed amount paid in exchange for an employee’s services. An employee
must be paid his or her wages for all hours worked. If wage is paid by result, the worker shall receive
at least the prescribed minimum wage for 8 hours of work. The amount may be increased or reduced
proportionately if work is rendered for more or less than 8 hours a day.

      An employer cannot make any deduction from an employee's wage except for insurance
premiums with the consent of the employee, for union dues, or for withholding taxes, SSS premiums
and other deductions expressly authorized by law .

WHAT I HAVE LEARNED

1. Economic indicators provide important information to investors and businesses.

An improvement in economic conditions would encourage investors to be more optimistic about the
future and potentially invest more because they anticipate positive returns.
2. Positive, because contemporary issue refers to an issue that is currently affecting people or places
that is unresolved.

WHAT I CAN DO
People's purchasing power is always influenced in a community by contemporary issues such
as migration, unemployment, and so on. Situations are constantly changing, sometimes for the better,
but often for the worse, especially for the masses. People with means of living frequently engage in
panic buying, hording goods they will never need in their entire lives. People with limited financial
resources will also adjust their spending. They will welcome any opportunity for assistance from
others, limiting their purchasing power like never before.