THE LAW OF DEMAND AND

SUPPLY AND MARKET

EQUILIBRIUM

Prepared By:
Archill B. Yapparcon
Opening Prayer:
Dear Lord and Father of all, Thank you for
today.
Thank you for 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.
RECALL
• BASIC ECONOMIC PROBLEM OF OUR
COUNTRY
• UNEMPLOYMENT
• UNDEREMPLOYMENT
• POVERTY
• POPULATION GROWTH
• NATURAL CALAMITIES
ARRANGE THE LETTERS TO FORM A WORD
1. ADMEND
DEMAND
2. PULSPY
SUPPLY
3. MUIRBEQUILI
EQUILIBRIUM
CONCEPT OF DEMAND AND SUPPLY

• Which do you think cost more,

Stones or Diamond?
• Which is more expensive
White Rice or Brown Rice?
 CONCEPT OF DEMAND AND SUPPLY
• How much do you think the price of
gasoline if there is an unlimited
supply of natural gas in the world?
• Why do you think some items are
more expensive than others?
INTRODUCTION TO DEMAND AND SUPPLY
TERMS AND DEFINITION

• DEMAND-is the willingness

of a consumer to buy a
commodity at a given price.
 INTRODUCTION TO DEMAND AND SUPPLY
TERMS AND DEFINITION
• Demand Curve-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
connected dots to derive the demand curve
DEMAND CURVE
 INTRODUCTION TO DEMAND AND SUPPLY
TERMS AND DEFINITION

LAW OF DEMAND-Using the assumption

ceteris paribus, which means all other
related variables except those that are
being studied at the moment and are
held constant, There is an inverse
relationship between the price of a good
and the quantity demanded for that good.
 INTRODUCTION TO DEMAND AND SUPPLY
TERMS AND DEFINITION
• LAW OF DEMAND:
• As price increases, the quantity demanded
for that product decreases.
INTRODUCTION TO DEMAND AND SUPPLY
TERMS AND DEFINITION

SUPPLY – refers to the number of

quantity of goods that a seller is
willing to offer for sale. The supply
schedule shows the different
quantities the seller is willing to sell
at various prices.
 INTRODUCTION TO DEMAND AND SUPPLY
TERMS AND DEFINITION
• Supply Curve - a graphical illustration of
the supply schedule, with the price
measured on the vertical axis (Y) and the
quantity supplied measured on the
horizontal axis (X). A supply curve is
upward sloping, indicating the direct
relationship between the price of the good
and the quantity supplied of that good.
SUPPLY CURVE
 INTRODUCTION TO DEMAND AND SUPPLY
TERMS AND DEFINITION
LAW OF SUPPLY - Using the same
assumption of “ceteris paribus”
(other things constant) there is a
direct relationship between the price
of a good and the quantity supplied
of that good.
 INTRODUCTION TO DEMAND AND SUPPLY
TERMS AND DEFINITION
• LAW OF SUPPLY :
As the price increases, the quantity
supplied of that product also increases.
 INTRODUCTION TO DEMAND AND SUPPLY
TERMS AND DEFINITION
EQUILIBRIUM- when all things or
variables are attained equally.
MARKET EQUILIBRIUM- is the state of
balance when demand is equal to supply.
The equality means that the quantity that
sellers are willing to sell is also the
quantity that buyers are willing to buy for
a price.
INTRODUCTION TO DEMAND AND SUPPLY
TERMS AND DEFINITION

• Equilibrium price - The price at

which demand and supply are
equal.
LAW OF SUPPLY AND DEMAND CURVE
 CLASS ACTIVITY
• present a short play that will portray
how law of demand and supply
happened in your everyday lives.
• Duration: at least 1-3 minutes
 ACTIVITY RUBRICS
POINTS COOPERATION PARTICIPATION
10 EAGERNESS TO DO
ACTIVELY PARTICIPATE,
SHARE A LOT TO DO
THE TASK
THE TASK
8 EAGERNESS TO DO GOOD FOLLOWERS
THE TASK ONLY
7 PARTICIPATED BUT WITH TEACHER’S
LATE SUPERVISION
6 DONE ACTIVITY W/ NOT EAGER TO
LESS COOPERATION PARTICIPATE
5 NO INTEREST NO INTEREST
ASSIGNMENT:
• What are the factors affecting the
law of Supply and Demand.

“For every peso spent on luxuries,

someone somewhere goes hungry.”

~~END OF LESSON~~