economics

1. SHS Demo Teaching August17, 2016
christopher d. balubayan cdbalubayan@gmail.com
Student Handout Answer Key Activity 1
Name: _________________________________________ Section: __________ Date: ________
What is the Demand? Key
For each of the following scenarios (and everything else being equal), determine ifthe demand for the good
or service would increase or decrease?
DEMAND
(increase or decrease)
SCENARIO
INCREASE
What would happen to the overall demand for tennis balls if the price of tennis
rackets went down?
DECREASE
What would happen to the overall demand for Macaroni and Cheese if the price
were to go up P1.50 per box?
INCREASE
You get a raise at work. What would happen to the demand for going to the
movies?
DECREASE
A new Burger King opens down the road. What would happen to overall
demand for McDonald’s?
DECREASE
Congress passes a law that increases income taxes by 5%. What would
happen to the overall demand for tickets to Cinema?
INCREASE
Angel Locsin is seen on the “red carpet” wearing a beautiful new Bench dress.
What would happen to overall demand for Bench clothing?
INCREASE
There is a sale on donuts at Mister Donuts’. What would happen to overall
demand for coffee at Mister Donuts’ Store’s?
DECREASE
You are shopping atHome Depot for a new grill and the salesperson lets it slip
that there will be a sale beginning nextweek. Whatwill happen to your demand
for the grill?
DECREASE
The surgeon general has just come out with a warning that eating sausage
causes cancer. What would happen to the overall demand for sausages?
INCREASE
What would happen to overall demand for the Sony Play station if the price went
down by 10 percent?

2. SHS Demo Teaching August17, 2016
christopher d. balubayan cdbalubayan@gmail.com
Student Handout Answer Key Activity 2
Name: _________________________________________ Section: __________ Date: ________
The Law of Demand Key
DEMAND The quantity of a good or service that buyers are willing and able to buy at all
possible prices during a period of time.
LAW OF DEMAND As the price ofa good or service rises (or falls), the quantity ofthat good or service
that people are willing and able to buy during a certain period oftime falls (or rises)
PRICE QUANTITY
P 32 350
P 34 300
P 36 250
P 38 200
P 40 150
All things being equal
If PRICE THEN QUANTITY P Q
IF PRICE THEN QUANTITY P Q
This is known as ____________________ relationship
RECALL: When prices RISE, quantity demanded DECREASES
I N V E R S E

3. SHS Demo Teaching August17, 2016
christopher d. balubayan cdbalubayan@gmail.com
Student Handout Answer Key Activity 3
Name: _________________________________________ Section: __________ Date: ________
Graphing Practice Key
Graph A – MSE Coin Purse
Price Quantity
Demanded
350 20
300 30
250 40
200 50
150 60
100 70
Use Graph “A” to answer the following scenario. (Be sure to use proper labels as appropriate)
1. Graph the demand curve for MSE Coin Purse. Assume the price is set at P250.00.
2. The price of MSE products from Manila went up 20%. As a result, the price of the new coin purse
went up to P20.00. Show how that would be illustrated on the graph. What is the new demand? 30
purses.
3. Provide a possible explanation of the change in demand using the;
a. Substitution Effect: Because the price wentup, people may justbuy a different purse,
reducing demand for the MSE coin purse.
4. Provide a possible explanation of the change in demand using the;
a. Income Effect: Monica is a Grade 11 student and doesn’thave much money. The
extra P20.00 makes it prohibitive for her to buy the coin purse.
P
350
300
250
200
150
100
20 30 40 6050 70
QTY
D

4. SHS Demo Teaching August17, 2016
christopher d. balubayan cdbalubayan@gmail.com
Graph B – Flying V Oil per Litter
Price Quantity
Demanded
65 25
60 35
55 45
50 55
45 65
40 75
Use Graph “B” to answer the following scenario. (Be sure to use proper labels as appropriate)
1. Graph the demand curve for the litters of oil in Flying V Company. Let’s assume that the going
price for a litter of oil is P55.00.
2. The Belmonte - Cayetano Bill in Congress was passed and signed by President Duterte, adopting
it into law. As Philippines will be less dependentofforeign oil, prices have gone down P5.00 a litter.
What is the new demand for oil? 55 Litters.
3. Provide a possible explanation of the change in demand using the;
a. Substitution Effect: As the price drops for oil, it becomes more appealing to buy
Philippine oil than foreign oil.
4. Provide a possible explanation of the change in demand using the;
a. Income Effect As the price has dropped for oil, people can afford to take
vacations as fuel prices will be cheaper in relation to their income.
P
65
60
55
50
45
40
15 25 35 5545 65
QTY
D

5. SHS Demo Teaching August17, 2016
christopher d. balubayan cdbalubayan@gmail.com
Student Handout Answer Key Activity 4
Name: _________________________________________ Section: __________ Date: ________
Shift in the Demand Curve Key
What factors would cause a SHIFT in demand for coffee?
NORMAL
GOOD
INFERIOR
GOOD
NEUTRAL
GOOD
(with more
income you
would buy more
of the good)
(would buy less,
you can now buy
more of another
good)
(would buy same
amount regardless
of increase or
decrease in income)
Income
Increases Decreases
Shift to the: RIGHT LEFT

6. SHS Demo Teaching August17, 2016
christopher d. balubayan cdbalubayan@gmail.com
Preferences (Taste)
/Advertising
You like More Don’t Like Anymore
Shift to the: RIGHT LEFT
Expectations
Shift to the: LEFT RIGHT
Price of Related Goods
SUBSTITUTES
COMPLEMENTS
Shift to the: LEFT RIGHT
Shift to the: RIGHT LEFT

7. SHS Demo Teaching August17, 2016
christopher d. balubayan cdbalubayan@gmail.com
Student Handout Answer Key Activity 5
Name: _________________________________________ Section: __________ Date: ________
Analyzing Shifts in Demand Key
For each scenario:
1) Use the graph to illustrate the change in demand with either:
a. a “shift” (a new D2 curve) or;
b. a “slide” (an arrow along the curve)
2) Then provide the reason for the change in consumer demand using one of the following:
a. Change in Price
b. Income
c. Preferences/Advertising
d. Expectations
e. Price of Related Goods (Substitute or Compliment)
Scenario 1
Local weather forecasters said
that the coming Kadayawan
festival in Davao will be sunny.
Stores see increased sales for
sunglasses, hats, and bottled
water.
EXPLANATION
EXPECTATIONS
(Sunny Forecast)
Scenario 2
The city government of Davao
issues tax rebate checks to
taxpayers, hoping they will
increase spending, thus
stimulating the economy. Sales of
cars, electronics, and clothing go
up.
EXPLANATION
INCOME
(Tax Rebate)
Scenario 3
Globe Corporation announces it
will introduce a new mega sim
pack in two months. Sales of the
older version ofthe sim pack drop
by 25 percent.
EXPLANATION
EXPECTIATIONS
(New Mega Sim pack coming out)
D1
D2
D1
D2
D1
D2

8. SHS Demo Teaching August17, 2016
christopher d. balubayan cdbalubayan@gmail.com
Scenario 4
The San Miguel Beer men are
eliminated from the playoffs.
Attendance for the weekend’s
Azkals games goes up.
EXPLANATION
PRICE OF RELATED GOODS
Substitutes
(No Basketball game)
Scenario 5
When 7 Eleven cuts the price of
hotdogs, people wantto buy more
hotdogs.
EXPLANATION
Slide
P Down D Up
Scenario 6
A series of TV commercials in
Davao shows people enjoying
eating Durian cakes and candies,
and orders for the said products
increases.
EXPLANATION
PREFERENCES
(Ad increases Desire)
Scenario 7
Sales of contact lens cleaner
increases as more people wear
contact lenses.
EXPLANATION
PRICE OF RELATED GOODS
Compliment
(Contact Lenses)
D2
D1
D
D2
D1
D2
D1

9. SHS Demo Teaching August17, 2016
christopher d. balubayan cdbalubayan@gmail.com
Student Handout Answer Key Activity 6
Name: _________________________________________ Section: __________ Date: ________
DEMAND QUIZ Key
For each scenario:
1) Draw a simple curve to illustrate the change in demand;
2) Then provide the reason for the change in demand
Scenario 1
You found a purse with P200 on
the ground and turned it into the
police. After a week, nobody
claimed it so you got P200 and
went to get kwek-kwek, which is a
normal good. Graph the change
for kwek-kwek.
EXPLANATION
Income Increased
(More money to spend on a
Normal Good)
Scenario 2
The Kadayawan Holiday sale
ended last Sunday so less
second hand clothes were bought
today.
EXPLANATION
Slide
P went Up
Scenario 3
You just bought a brand new
Canon printer for your desk. What
will happen to the demand for
printer ink?
EXPLANATION
COMPLIMENTS
(Ink is a Compliment to printer)
Scenario 4
A 3-Day Midnight sale at Unitop
Supermarket is announced to
begin nextweek. Less LED bulbs
were desired this week.
EXPLANATION
EXPECTATIONS
(Price will be dropping nextweek,
fewer wanted now)
D1
D2
D2
D1
D
D2
D1

10. SHS Demo Teaching August17, 2016
christopher d. balubayan cdbalubayan@gmail.com
Multiple Choice: Identify the choice that BEST complete the statement or answers the question.
1. Which is an example of the law of demand at work?
a. The price of pizza goes up when the price of cheese goes up.
b. Demand for pizza goes down when tacos become more popular.
c. The price of pizza falls when demand for pizza falls.
d. Demand for pizza rises when the price of pizza falls.
2. How does the substitution effect work when the price of an item drops?
a. The item becomes less and less popular as price drops.
b. The substitutes for the item also suffer a drop in price.
c. Consumers buy the item as a substitute for other things.
d. Consumers buy the item even if they do not particularly want it.
3. If prices rise but income stays the same, what is the effect on the quantity demanded?
a. Quantity demanded increases b. More goods are bought
c. Fewer goods are bought d. Demand stays the same
4. How can expectations about the future change consumer behavior?
a. Immediate demand for a good will drop if the price is expected to stay the same
b. Immediate demand for a good will rise if the good is expected to be plentiful.
c. Immediate demand for a good will rise if its price is expected to rise.
d. Immediate demand for a good will drop if there are no substitutes available.
5. Which of the following will happen if the price of butter goes up?
a. The demand for butter increases.
b. The demand for margarine increases.
c. The demand curve for butter moves (slides) to the right.
d. The demand curve for margarine moves (slides) to the left.
6. What causes a shift in the demand curve?
a. A decrease in price. b. A change in an area other than price.
c. An increase in price. d. A change in price and availability.
7. John gets a raise and decides to start buying enriched pasta instead of cheaper instant noodles
For John, instant noodles are examples of,
a. Inelasticity. b. A market demand.
c. Complements d. Inferior goods.
8. During a six-month period, the price of a popular shoe raises from P28 to P39 a pair. During this
same period, demand for this shoe will probably
a. Increase b. Remain constant
c. Decrease d. Disappear
9. The substitution effect and the income effect describe
a. How income changes when buyers change jobs.
b. Choices that producers make to improve goods.
c. Factors that influence consumer buying choices.
d. Market changes that affect production of goods.
10. In July, an automobile company announces that nextyear’s models, with more features, will start to
arrive in September or October. What is likely to happen to demand for this year’s model in
August?
a. Demand will rise in anticipation of higher prices.
b. Demand will fall in anticipation of lower prices.
c. Demand will go to zero because everyone will want the new model.
d. Demand will stay the same and price will stay the same.