Arowwai Industries

DEMAND &
SUPPLY
A P P L I E D E C O N O M I C S I G R O U P 1 P R E S E N T A T I O N
Arowwai Industries

TABLE OF CONTENTS
01. Demand
THE MARKET
DEMAND
THE LAW OF DEMAND
THE THREE METHODS TO SHOW THE CONCEPT OF
DEMAND
NON-PRICE DETERMINANTS OF DEMAND

02. Supply
SUPPLY
THE LAW OF SUPPLY
THE THREE METHODS TO SHOW THE CONCEPT OF SUPPLY
NON-PRICE DETERMINANTS OF SUPPLY
 Arowwai Industries Market Platform - It is where buyers and sellers
meet to exchange products and purchasing
power (money) guided by the market price.

The Consumer Market is most visible to us

consumers as we also partake in its activities.

On the other hand, Producer Markets enable

raw materials and intermediate products
producers to sell their products to final product
THE MARKET producers who are now the market buyers.

It is a medium of interaction between

buyers and sellers of products. Likewise, Resource Market enables resource
owners to sell the basic services of Labor (skill),
land (occupancy), and capital (money use) to
producers of goods and services.
DEMAND
It is the willingness of a consumer to buy a
commodity at a given price. It is a quantity of a
good that a person will buy at a given time (eg.
weekly), given the price of that good. It means the
desire of a consumer to buy goods and services and
his/her willingness to pay a certain price for a good
or service.
Applied Economics

THE THREE
METHODS TO SHOW
THE CONCEPT OF
DEMAND

1. Demand Schedule
2. Demand Function
3. Demand Curve
DEMAND
SCHEDULE
It shows the various amounts and prices that
consumers are willing to purchase at various prices.
The schedule lists the specific number of units that
the consumer will buy at different prices. It is a
tabulation of the various quantities that will be
bought at given prices.
DEMAND SCHEDULE
DEMAND
FUNCTION
It is expressed in an equation, a demand function
describes the relationship between the amount
demanded for a good (the dependent variable)
depends on its determinant.
It is a mathematical equation that shows how quantity
demanded of a good depends on its determinants, the
most important of which is the Price of the good itself.

Thus,the equation:

Qd=f(P)
Qd=Quantity Demanded
P= Price
DEMAND CURVE
It is a graphical illustration of the demand
schedule, with the price measured on the
vertical axis Y and the quantity demanded
measured on the horizontal axis X.
The values are plotted on the graph and are
represented as dots connected to derive
demand curves.
Downward-sloping curve, indicates the inverse
relationship between the two variables, which
are price and quantity demanded.
DEMAND CURVE
MOVEMENT
ALONG VERSUS
SHIFTS OF THE
DEMAND
CURVE
NON-PRICE
DETERMINANTS
OF DEMAND
Income
Taste
Expectations of future price and income
Price of Related Goods
Populations/ Number of consumers
Applied Economics

SUPPLY
It refers to the quantity of goods
that a seller is willing to offer for
sale. It is the amount of a specific
good or service that is made
available to the consumers at a
specific price.
Applied Economics

THE THREE
METHODS TO SHOW
THE CONCEPT OF
SUPPLY

1. Supply Schedule
2. Supply Function
3. Supply Curve
 Law of Supply

The relationship between the price and the quantity is directly proportional.
The higher(Lower) the price, the Higher(lower) is the quantity supplied.
Applied Economics

SUPPLY SCHEDULE
Shows the different quantities the
seller is willing to sell at various
prices. It is a chart that lists how
much of a good a supplier will offer
at different prices.
SUPPLY SCHEDULE
Applied Economics

SUPPLY FUNCTION
Shows the dependence of supply
on the various determinants that
affect it.

The equation, Qs=f(P)

Qs= Quantity Supplied
P= Price
Applied Economics

SUPPLY CURVE
A change in quantity supplied refers to a
movement along the supply curve, which
is caused only by a change in price.
A supply curve is only accurate as long as
there are no changes other than price
that could affect a consumer’s decision
When factors other than price (non-price
factors) affect the supply curve, the
entire curve shifts to rightward or
leftward.
SUPPLY CURVE
NON-PRICE
DETERMINANTS
OF SUPPLY
Assumption of Ceteris paribus
Cost of Production
Technology
Improved availability of raw materials and
resources
Number of producers/sellers and plant capacity
or size of facilities
Arowwai Industries

THANK YOU
A P P L I E D E C O N O M I C S I G R O U P 1
Applied Economics

MEMBERS:
OSMILLO, PRINCESS
MALLILLIN, JOHN ERICK
TALADHAY, ROBERT ANTHONY
ALBUERA, MA. SOFIA
BENIPAYO, MAY LORAINE
DAMA-O, GERALDINE
GO, ANGELICA EUNICE
MOYA, RYZIALYN
PIÑERO, REYLEEN MAE
VALDEZ, ALIYA