Buy a cheap laptop that

has “some” cheap

maintenances to be
conducted for its full use
for the rest of its usage?

OR
Buy expensive laptop but
you will spend a lot of
money to provide upgrades
for its full usage in the
short run?
Purchase a fast internet
package thru loading
your mobile subscription
worth P500 but in
return, you will pay 150
pesos more.
OR
Purchase a internet package
worth P500 but, provides a
mediocre to slow internet
speed.
Buy P2000 worth of 10 bottles of
70% solution rubbing alcohol in
the grocery and exhausting all of
their pantry supplies in the
process.

OR
Buy P1000 worth of 40
bottles of 60% solution
rubbing alcohol in the
grocery and exhausting
all of their pantry
supplies in the process.
Buy and choose
primewater as your full
source of water in your
house.

OR
Buy and choose mactan rock as
your full source of water in your
house.
DEMAND &
SUPPLY
Learning Objectives:
Discuss thoroughly the
concepts in demand,
supply, elasticity, and
utility.
A Complementary good is a product or
service that adds value to another. In
other words, they are two goods that the
consumer uses together.
DVD is a complementary
product of DVD PLAYER. If the
price of DVD increases, quantity
demanded for DVD players will
decrease and VICE VERSA.
Product B is a complementary product of Product D. If the price of B
increases, quantity demanded for product D
a. increases
b. decreases
c. remains constant
DECREASES
d. is negative
The Income of the consumer would
increase it is most likely more demand
from sorts of product will move right
hence, it will increase.
Entire demand curve will shift to the
right
If income of the consumer would increase, how will it affect the
demand curve for a product?
a. Entire demand curve will shift to the left
b. Entire demand curve will shift to the right
c. Demand curve will remain as is or constant
d. The demand curve will move sloping downward.
 If a drop or decrease the price
of rice it is most likely
that the demand and the
production of this commodity
will increase.

1
 Which of the following would decrease the price of rice?
a. A decrease in the price of pesticides
b. An increase in the demand for rice
c. An increase in the production of rice
d. An increase in the price of corn

An increase in the production of rice

 Preferences of consumers tend
to decrease if there are LESS
CONSUMERS AND VICE VERSA.

4
Quantity demanded for pork will
decrease.
Pamilya Purog is a big family. They love to eat pork adobo everyday.
Four members of the family left to work abroad. How will it affect their
buying behaviour for pork?
a. Quantity demanded for pork will remain constant
b. Quantity demanded for pork will decrease
c. Quantity demanded for pork will increase
d. Quantity demanded will affect the supply for pork
Moana loves to eat pastillas more than the binagol. When she got her
first salary increase, her quantity demanded;
a. for pastillas remained the same
b. for binagol increased
c. for pastillas increased
d. for pastillas decreased

for pastillas increased

 Calamities and other negative
externalities tend to affect and
thus create full expectations of
an increase of both essential
and non essential commodities.

5
When the supply of alcohol in the market declines in the current
pandemic time,
a. quantity demanded for it diminishes
b. quantity demanded for it increases
c. price for alcohol increases
d. price for alcohol decreases

price for alcohol increases

 Government intervention can
also imposed on the overall
prices of related goods and
services via cash assistance,
subsidies and loans for
businesses to fully recover.
 The government extends assistance to businesses who had been
compliant and diligent in paying taxes to the government. This is a big
help to business operations, particularly in their cost of production.
How will it affect the pricing decision of these businesses?
a. Businesses can lower the selling price of their products or services
b. Businesses can increase the selling price of their products or services

Businesses can lower the selling price

c. Businesses can freeze the price and still earn profit
d. Businesses’ pricing decisions will not be affected at all
of their products or services
Inelastic products tend to shrink in amount if these
commodities are prone to multiple changes in outlays.
If the demand of a good is inelastic, an increase in its price will cause
the total expenditure of the consumers of the good to:
a. Increase in huge amount
b. Decrease in small amount
c. Increase in small amount
d. Decrease in huge amount

DECREASE IN SMALL AMOUNT

 SIX (6) Factors Affecting Price Determination of Product

PRODUCT COST UTILITY & DEMAND

MARKET
COMPETITION

GOV’T REGULATIONS PROFIT

PRICING OBJECTIVES MAXIMIZATION
 Why are we
learning these
concepts in
MANRECO?

More efficient and

strategic resource
allocation
 In the last two (2) weeks, what products/things
have you bought for yourself? Was that
particular thing essential or not?

OK lang po magtagalog o waray after all, its our main language. 