TO

APPLIED ECONOMICS
WEEK 2 Q1
Day 1

September 7, 2023
APPLIED ECONOMICS
Week 2 (W2Q1)
OPENING PRAYER

Dear Lord and Father of all,

Thank you for today.
Thank you for your ways in which you provide for us all.
For your protection and love we thank you.

Help us to focus our hearts and minds now on what we are

about to learn.
Inspire us by your Holy Spirit as we listen and write.
Guide us by your eternal light as we discover more about
the world around us.

We ask all this in the name of Jesus.

Amen.
APPLIED ECONOMICS
Week 2 (W2Q1)

ATTENDANCE
APPLIED ECONOMICS
Week 2 (W2Q1)

REVIEW
APPLIED ECONOMICS
Week 2 (W2Q1)

WEEK 2 Q1
APPLIED ECONOMICS
Week 2 (W2Q1)

GUESS THE WORD

APPLIED ECONOMICS
Week 2 (W2Q1)

MASK
APPLIED ECONOMICS
Week 2 (W2Q1)

ONIONS
APPLIED ECONOMICS
Week 2 (W2Q1)

RICE
APPLIED ECONOMICS
Week 2 (W2Q1)

FLOWERS
APPLIED ECONOMICS
Week 2 (W2Q1)

HAM
APPLIED ECONOMICS
Week 2 (W2Q1)
APPLIED ECONOMICS
Week 2 (W2Q1)

MARKET DEMAND,
MARKET SUPPLY and
MARKET EQUILIBRIUM
APPLIED ECONOMICS
Week 2 (W2Q1)

LEARNING OBJECTIVES
1. Analyze market demand, market supply and market
equilibrium.
APPLIED ECONOMICS
Week 2 (W2Q1)
Products can be
tangible (GOODS)
WHAT IS

MARKET? Intangible (SERVICE)

- a place where parties can gather to
facilitate the exchange of goods
and services.
APPLIED ECONOMICS

WHAT IS

DEMAND?
- Is the willingness of a
consumer to buy a
commodity at a given
price.
LAW OF DEMAND
SAMPLE CASE
DEMAND SCHEDULE

PRICE QUANTITY
DEMAND SCHEDULE
- A table that shows the 2 50
quantity demanded of a
good or service at different 4 40
price levels.
6 30

8 20

10 10
LAW OF DEMAND

LAW OF DEMAND
- There is an inverse relationship between price and
quantity demanded.
- As price increases, the quantity demanded for the
product decreases.
LAW OF DEMAND
PRICE

10
The Demand
Curve is
downward 8
sloping
6

QUANTITY
DEMANDED
10 20 30 40 50
LAW OF DEMAND
PRICE
P Qd
10
P Qd
8

QUANTITY
DEMANDED
10 20 30 40 50
LAW OF DEMAND

PRICE CHANGE
A price change means there is movement along the
demand curve.
LAW OF DEMAND
PRICE
P Qd
10
P Qd
8

QUANTITY
DEMANDED
10 20 30 40 50
LAW OF DEMAND

Increase or Decrease in Demand

Increase in demand shifts the demand curve to the right.

Decrease in demand shifts the demand curve to the left.
LAW OF DEMAND
PRICE Qd RIGHT

Qd LEFT
10

QUANTITY
DEMANDED
10 20 30 40 50
LAW OF DEMAND
SAMPLE CASE
PRICE QUANTITY

2 50 70 Qd
4 40 60

6 30 50

8 20 40

10 10 30
LAW OF DEMAND
PRICE
Shifters of Demand
Preferences 10
Number of Buyers
Price of related goods 8
Income
Expectations 6

QUANTITY
DEMANDE
10 20 30 40 50 60 70
LAW OF SUPPLY

WHAT IS

SUPPLY?
- Refers to the quantity of
goods that a seller is
- The amount of specific
willing to offer for sale.
good or service that is
made available to the
consumers at a specific
price.
LAW OF SUPPLY

LAW OF SUPPLY
- There is a direct relationship between price and
quantity supplied.
- As price increases (decreases), the quantity supplied
of that product increases (decreases).
LAW OF SUPPLY
SAMPLE CASE
PRICE QUANTITY

2 10
4 20

6 30

8 40

10 50
LAW OF SUPPLY
PRICE

10
The Supply
Curve is upward
sloping 8

QUANTITY
SUPPLIED
10 20 30 40 50
LAW OF SUPPLY
PRICE
P Qs
10
P Qs
8

QUANTITY
SUPPLIED
10 20 30 40 50
LAW OF SUPPLY

PRICE CHANGE
A price change means there is movement along the
supply curve.
LAW OF SUPPLY
PRICE
P Qs
10
P Qs
8

QUANTITY
SUPPLIED
10 20 30 40 50
LAW OF SUPPLY

Increase or Decrease in Supply

Increase in supply shifts the supply curve to the right.

Decrease in supply shifts the supply curve to the left.
LAW OF SUPPLY
PRICE Shifters of Supply
Price of resources
10 Technology
Government involvement
Number of sellers
8
Expectations

QUANTITY
SUPPLIED
10 20 30 40 50
LAW OF SUPPLY
SAMPLE CASE
PRICE QUANTITY

2 10 20 Qs
4 20 30

6 30 40

8 40 50

10 50 60
LAW OF SUPPLY
PRICE

10

QUANTITY
SUPPLIED
10 20 30 40 50 60