Name: Earl Justine V.

Ravelo Subject: Economics

Grade/Section: 12 ABM (A)

1. Definition of
a. Elasticity- is a method of measuring the likelihood of one economic factor
affecting another, such as when the price of an item affects consumer
demand or when supply affects how much something costs. Elasticity is
driven by the principles of supply and demand, meaning the higher the
demand for an item, the more elastic its price is. The elasticity dynamic is also
affected by the number of alternative options in the market. In other words,
when people have plenty of similar options, price elasticity will be lower.
b. Demand Elasticity- occurs when the price of a good or service affects
consumer demand. If the price goes down just a little, consumers will buy a
lot more. If prices rise just a bit, they'll stop buying as much and wait for prices
to return to normal. To emphasize, this is a degree to which changes in a
good’s price affect the quantity demanded by consumers. The demand for a
product can be elastic or inelastic.

2. Types of Demand Elasticity

a. Elastic
b. Inelastic
c. Unitary o unit elastic
d. Perfectly elastic
e. Perfectly Inelastic Demand
Name: Earl Justine V. Ravelo Subject: Entrepreneurship

Grade/Section: 12 ABM (A)

Four Ms of Production
The most critical factor in the whole production system are the inputs and
the transformation process. Their quality determines the quality of the
output. It is also known as “garbage in, garbage out” or GIGO in the
parlance of computer technology.

A. Manpower- simply refers to the human workforce involved in the

manufacture of products. It is considered as the most critical and
important factor of production. The entrepreneur must determine,
acquire, and match the most qualified employees with the jobs at the
most appropriate time period.
Some of the manpower criteria that must be highly considered by the
entrepreneur are as follows:
1. Educational qualifications and experience required for the job.
2. Status of employment, whether permanent or temporary.
3. Number of workers required for the job.
4. Skills and expertise required for the job.
5. Appropriate time the worker is needed.
6. Conduct of background checking and issuance of payments.
7. Amount of salary or wages and to other mandatory benefits.
8. Availability of potential workers in the community.
B. Method or production method, refers to the process or technique of
converting raw materials to finished products. The raw materials
undergoes several stages before it is completed and becomes ready
for delivery to the target customers.
The selection of the method of production is dependent on some
factors, namely,
1. Product to produce
2. Mode of production
3. Manufacturing equipment to use
 4. Required skills to do the work.
C. Machine- refers to the manufacturing equipment used in the
production of goods or delivery of services.
In the process of selecting the type of equipment to purchase, the
entrepreneur may consider the following important elements:
1. Types of products to be produced
2. Production system to be adopted
3. Cost of the equipment
4. Availability of spare parts in the local market
5. Efficiency of the equipment
6. The skills required in running the equipment
D. Materials-simple refers to the raw needed in the production of a
product. Materials basically form part of the finished product. For
example, wood or lumber is a raw materials used to produce a table
or a chair. In case raw materials are of poor quality, the finished
product will be poor quality as well.
The entrepreneur may consider the following important factors in the
selection of raw materials;
1. Cost
2. Quality
3. Availability
4. Credibility of suppliers
5. Waste that the raw materials may produce