MARK JOSEPH G.

MANALANG SY-2021-2022
12-GAS-VYGOTSKY WEEK 1
APPLIED ECONOMICS .

I. Evaluating learning

A. Case Problem 1:
A).
1. Supply
2. Factor: Since the cost of inputs/production has risen, people want to sell fewer sweatshirts at every price.

3. QS=

4.

5. Supply curve shifts to the left

Factor A: Cotton is the raw material for sweatshirts. Consider a typhoon in Bicol that damages the cotton
crop. The price of cotton will increase and the manufacturing cost of sweatshirts will also increase.
Producers will reduce the supply of sweatshirts at a high cost of production.

B).
1. Demand
2. Factor: Since the price of substitute (leather jacket) has fallen, people want to buy fewer
sweatshirt at every price.
3. QD=

4.

5. Demand curve shift to the left

Factor B: A fall in the price of leather jackets will lead more people to buy later jackets, a
substitute for sweaters. An increase in the amount sold of substitute goods sold reduces demand
for sweatshirts.
C).
1. Demand
2. Factor: There will be change in income of the sellers. Higher consumers/demand means, more
sweatshirts to sell.
3. QD=

4.

5.Demand curve shift to the right

Factor C: Required use of sweatshirts/proper attire will increase the demand for sweatshirts.

D).
1. Supply
2. Factor: Since the productivity has risen, people want to sell more sweatshirts at every price.
3. QS=

4.

5.Supply curve shift to the right

Factor D: New knitting machines will increase productivity and thus lower costs of production and increasing
the supply of sweaters.
Case
Price Problem
of Pizza 2:

Quantity of Pizza

Assume that the quantity supplied increased by 10 times each from the previous list of
the quantity supplied.
 What is the effect on the supply curve? Shift to the left or right? Ans. Shift
to the right
 What is the equilibrium point of the supply Curve 1? Pe = 300 ; Qe = 50
 What is the equilibrium point of the supply Curve 2? Pe = 250 ; Qe = 55