APPLIED

ECONOMICS 12

NENNALEEN M. LOBIGAS
Senior High School Teacher I
Activity 1: WHO AM I?
Direction: Solve each given equation
below using the four (4) fundamental
operations (addition, subtraction,
multiplication and division). Write the
letter that corresponds your answer on
the space provided to find the magic
word.
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____
1 2 3 4 5 6 7 8 9 10
 

1. 2 + 4 = ____ 4. 4 x 1 = ____ 7. 18 2 = ____ 10. 7 + 5 =____

2. 8 – 3 = ____ 5. 10 + 3 = ____ 8. 5 x 3 = ____
3. 15 5 = ____ 6. 20 – 5 = ____ 9. 39 3 = ____

A=3 E=6 L=5 T = 13

C=9 I = 15 S=4 Y = 12
 E L A S T I C I
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____ T Y
1 2 3 4 5 6 7 8 9 10
 

6
1. 2 + 4 = ____ 4
4. 4 x 1 = ____ 9 10. 7 + 5 =____12
7. 18 2 = ____
2. 8 – 3 = ____
5 13
5. 10 + 3 = ____ 8. 5 x 3 = ____
15
3. 15 5 = ____3 6. 20 – 5 = ____
15 9. 39 3 = ____13

A=3 E=6 L=5 T = 13

C=9 I = 15 S=4 Y = 12
General Objective:
 Determine the implications of market pricing on
economic decision-making.
Subtasks:
• Define elasticity.
• Distinguished and differentiate the different
types of elasticity an its example.
• Appreciate the significance of elasticity in
everyday living.
 Activity 2: FLOWER GRAPHIC
ORGANIZER

Direction: Write a
word that you can
associate with the
ELASTICITY

word ELASTICITY.
ELASTICITY
 ELASTICITY
- is used to define the change in behavior of the
sellers or buyers because of the change in price
and/or other determinants of supply and
demand.

- it measures how the sellers or buyers respond

to the changes in determinants mainly the price.
Activity 3: MATCHING TYPE
Direction: Match the indicated definition in
Column A to the terms where they belong
indicated in column B. Write the letter of
your answer in a ¼ sheet of paper.
 COLUMN A COLUMN B
 
1. The percentage change in price is equal to the A. Elastic
percentage change in quantity demanded.

2. The percentage change in quantity demanded is B. Inelastic

greater than the percentage change in price.

3. When at the same price, the change C. Unitary

of demand is infinite.

4. When there is no change in demand D. Perfectly Elastic

despite of the changes in price.

5. The percentage change in quantity demanded is E. Perfectly Inelastic

lesser than the percentage change in price.
 Types of Elasticity
 1. Elastic
 2. Inelastic
 3. Perfectly Elastic
 4. Perfectly Inelastic
 5. Unitary
 1. Elastic
D - the percentage change in quantity demanded
is greater than the percentage change in price.
- it has more than 1 elasticity coefficient.
- it means that if the price will increase there is
a greater possibility that the consumer will
not buy the product or may decrease the
quantity of the product to buy.
Note: ELASTICITY COEFIFCIENT – is a number describing the
elasticity of the demand and supply curve.

S - the percentage change in quantity supplied

is greater than the percentage change in price.
 2. Inelastic
D - the percentage change in quantity demanded is
lesser than the percentage change in price.
- it has less than 1 elasticity coefficient.
- it means that the decision of the consumer to
buy the product is not that affected by the
increase or decrease in price. The seller cannot
assume that the consumer will buy more if they
will decrease the price since the change in
quantity demanded is only minimal.

S - the percentage change in quantity

supplied is lesser than the percentage
change in price.
 4. Perfectly Elastic
- when at the same price, the change of demand is
infinite. It means that a small change in price
may cause a huge change in demand.
 3. Perfectly Inelastic
- when there is no change in demand
despite of the changes in price.
- elasticity coefficient is zero.
- it means that the demand is not
affected by price at all. The demand
will still be the same even if there is an
increase or decrease in price.

S- when there is no change in

quantity supplied despite of the
changes in price.
  5. Unitary
- the percentage change in price is equal to the percentage
change in quantity demanded.
- the elasticity coefficient is 1.
- it means that if the price increase by 1 % the demand will
decrease by 1 % also and vice versa.
Activity 4: TABLE COMPLETION
Direction: What if the price of the
products/services listed in column 1 increase its
price, what will you do? Let us identify your
responses. Based on what is listed in the column
1, write what is your decision in the column 2 and
in column 3 briefly explain the reason in making
such decision. Your decision could be:
1. Ikaw pa rin. (if you still choose to buy or avail the product/service)
2. Buti pa siya. (If you choose to buy another product or an alternative)
3. Sige na nga. (If you have no choice but to buy the product)
4. Huwag na lang. (if you decide not to buy the product and not to find alternative)
Activity 5:
Directions: Answer the following questions.
1. Give some real-life situations where the
concept of elasticity is being applied.
2. As a student how can you apply elasticity
in your daily life?
Activity 6: MULTIPLE CHOICE
Direction: Choose the letter of the correct answer. Write your answer on a ¼ sheet of paper.
 
1. The degree of change in demand or supply due to the change in its determinants
a. Inelastic c. Cross Elasticity
b. Elasticity d. Price Elasticity

2. The main determinants of supply and demand

a. Technology c. Price
b. Income d. Quantity
 
3. The elasticity coefficient of 0.7 means
a. Elastic c. Perfectly elastic
b. Inelastic d. Perfectly inelastic
 
4. If the computed price elasticity is more than 1. What does it mean?
a. Elastic c. Perfectly elastic
b. Unitary d. Perfectly inelastic

5. The elasticity is said to be _______ if the coefficient is 1.

a. Elastic c. Perfectly elastic
b. Unitary d. Perfectly inelastic
 Activity 7: IDENTIFICATION
Direction: Read carefully the questions and identify what is asked in each item.
Write your answer in a ¼ sheet of paper.
1. What do you call is the change in behavior of the sellers or buyers because
of the change in price and/or other determinants of supply and demand?
2. The elasticity coefficient is zero. It means that the demand is not affected
by price at all.
3. It has more than 1 elasticity coefficient. It means that if the price will
increase there is a greater possibility that the consumer will not buy the
product or may decrease the quantity of the product to buy.
4. The elasticity coefficient is 1. It means that if the price increase by 1 % the
demand will decrease by 1 % also and vice versa.
5. It has less than 1 elasticity coefficient. It means that the decision of the
consumer to buy the product is not that affected by the increase or decrease in
price.
Answers of Activity 7:
1. Elasticity
2. Perfectly Inelastic
3. Elastic
4. Unitary
5. Inelastic
THANK YOU!
Activity: GRAPH