GRADE & SEC: _ 12 – FRANCIUM_ DATE: March.

24, 2024

LIST OF NAMES:

• MALABAD, KRISTA MAE A.

• MALINIS, KATHY S.
• NOCETE, CASSANDRA
• PURA, PRECIOUS DIAN A.

DIRECTIONS: Create the demand schedule, demand curve, supply schedule, and supply curve.

In one pharmaceutical company, the annual demand for a drug used to treat malaria is qd = 405 − 2P,
while the supply is qs = 5 + 3P.

Construct the demand schedule and curve, and the supply schedule and curve with the average price of
P50, P60, P70, P80, P90, P100. Attach your graphing paper for the demand and supply curve.

PRICE DEMAND SUPPLY

50 305 155
60 285 185
70 265 215
80 245 245
90 225 275
100 205 305
SHOW YOUR SOLUTION:

Demand Sol.

Qd = 405 − 2P
= 405 – 2 (50) = 405 – 2 (60) = 405 – 2 (70) = 405 – 2 (80) = 405 – 2 (90) = 405 – 2 (100)

= 405 – 100 = 405 – 120 = 405 – 140 = 405 – 160 = 405 – 180 = 405 – 200

= 305 = 285 = 265 = 245 = 225 = 205

Supply Sol.

Qs = 5 + 3P

= 5 + 3 (50) = 5 + 3 (60) = 5 + 3 (70) = 5 + 3 (80) = 5 + 3 (90) = 5 + 3 (100)

= 5 + 150 = 5 + 180 = 5 + 210 = 5 + 240 = 5 + 270 = 5 + 300

= 155 = 185 = 215 = 245 = 275 = 305

GUIDE QUESTION:

⦁ Describe the demand curve.

- As the prices of the drugs used to treat malaria increases, the quantity annual demand
decreases. The graph shows an inverse relationship between the two variables.

⦁ Describe the supply curve.

- As the prices of the drugs used to treat malaria increases, the supplied quantity also increases.
Showing a proportional relationship of the two variables.

⦁ What is the relationship of the prices and quantity demanded?

- The relationship is inversely proportional as economists call this the Law of Demand. If the
prices of the product increases, less people would be willing to buy as they seek products that
are cheaper. As a result, the quantity demanded will decrease as it is not sought out. And as the
prices decrease, the quantity demanded increases.

⦁ What is the price where the demand curve and supply curve intersect?

- When the price is at 80. The demand curve line is going down meanwhile the supply curve is
going up. There is a point where the demand and supply curve meet, and that is where both
prices are at 80. This is called equilibrium price, the point where the quantity demanded is equal
to the quantity supplied.

⦁ What are the prices above the point of intersection?

- The prices are 90 and 100.

⦁ What are the prices below the point of intersection?

- The prices are 70, 60 and 50.