2. Content Standard:
The learner demonstrates an understanding of the
law of supply and
demand, and factors affecting the economic situation.
Performance Standard:
The learners shall be able to analyze and propose
solution/s to the economic problems using the
principles of applied economics.
Most Essential Learning Competencies:
Analyze market demand, market supply and
market equilibrium.
Competency Code: ABM_AE12-Ie-h3
APPLIED
ECONOMICS
3. Objectives
The learner is able to:
A. determine the concepts of market demand;
B. apply the law of demand in real-life situations,
and;
C.construct and analyze the demand curve in a
graph.
APPLIED
ECONOMICS
6. Motivation
What do you think is the solution to the
problem that is existing in your community?
Choose the most efficient products that could
be produced to maximize production to help
the economy
RAW MATERIAL WHAT TO PRODUCE?
Flour cakes or breads?
Fruits canned juice or fresh juice?
Coconut oil cooking oil or expensive lotion?
APPLIED
ECONOMICS
10. 3. YPSUPL
refers to the desire of sellers to produce and
sell good at various possible prices
11. QUUMBEIL
IRI
a situation in which the market price reached the same level
of the quantity supplied that is equivalent (balanced) to
quantity demanded
21. “Bulb onion (allium cepa L.), locally known as “sibuyas”, is
a favorite seasoning, and its pungent aroma and sharp
taste makes it ideal for spicing up meat, salads and
vegetable dishes. It is also used to cure a wide array of
physiological disorders such as cough, obesity, insomnia,
hemorrhoid and constipation.” (Onion Production Guide,
2022)
APPLIED
ECONOMICS
23. APPLIED
ECONOMICS
What is the current situation about onions
in the Philippines and why it is too pricey
these days?
24. APPLIED
ECONOMICS
What is the current situation about onions
in the Philippines and why it is too pricey
these days?
“Basic economics tells us that when the
quantity demanded is greater than the
supply, the price will rise. This might be
the case for onions in the Philippines.” (CNN
Philippines, January 11)
25. APPLIED
ECONOMICS
ACTIVITY TIME!!!!
Do the following, being “Sibuyas” as the
subject:
Group 1: Present a Short Jingle about the
topic.
Group 2: Form a Pickup/Hugot line battle
about the topic.
Group 3: Present a Short Role Play.
Group 4: Create and present a Tanka
Poem.
Group 5: Express facts about the subject.
27. DEMAND
Refers to the willingness and ability of
consumers to buy a given quantity of a good or
service for a particular period of time. Market
demand, however, is the sum of all individual
demand (Patindol, 2012)
APPLIED
ECONOMICS
LAW OF DEMAND
as the price increases, quantity demanded
decreases;
conversely, as the price decreases, quantity
demanded is also increases and vice versa, holding
all other factors constant (Patindol, 2012).
The law of demand shows an inverse relationship
28. APPLIED
ECONOMICS
EXAMPLE
Last 2020, the cost for a one kilo
of Calamansi (Philippine lime)
was P50.00 while the demand is
not too high. While during the
first quarter of 2021, the price per
kilo reached up to P100.00 pesos
because of the increasing
demand domestically by the
manufacturing firms of beverages
for vitamin c including the
household consumption.
29. APPLIED
ECONOMICS
QUANTITY DEMANDED
The total number of goods and services that buyers
are willing and able to purchase at a given price is
called quantity demanded (Rice University, 2020)
DEMAND SCHEDULE
Shows the relationship between the price of a good
and the quantity demanded for a product purchase
by the buyers at various prices at a given time.
(Dinio & Villasis, 2020
31. APPLIED
ECONOMICS Elasticity of Demand and its Application in
Market Analysis
Elasticity of Demand /Ed/
It measures on the responsiveness of quantity
demanded to one of its determinants (factors). Price
elasticity of demand measures of how much the
quantity demanded of a good respond to a change in
the price of that good (Mankiw, 2007).
Calculating the Price Elasticity of Demand
Economists compute the price elasticity of demand as the
percentage change in the quantity demanded (%∆Q) divided
by the percentage change in the price (%∆P). That is,
32. APPLIED
ECONOMICS Calculating the Price Elasticity of Demand
%∆Q: percentage change in the quantity demanded divided
by the
%∆P: percentage change in the price. That is,
33. APPLIED
ECONOMICS Example computation for elasticity of demand
/Ed/
Using the data in table 1:
Q1=5; Q2=10
P1=500.00; P2
Thus:
Q1
Q2
P1
P2
price elasticity of demand is 6.3 and considered
relatively elastic demand reflecting that the change in
the quantity demanded is proportionately sixfold as
34. APPLIED
ECONOMICS
Variety of Demand Curve and its
implications:
Elastic - /Ed/ > 1: Quantity moves proportionately more
than the price
Inelastic - /Ed/ < 1: Quantity moves proportionately less
than the price
Unitary - /Ed/ = 1: Quantity moves the same amount
proportionately as price
Perfectly Inelastic /Ed/ = 0: Demand curve is vertical
regardless of the price, the quantity demanded stays the
same
Perfectly Elastic /Ed/ = ∞: Price elasticity of demand
approaches infinity and the demand curve becomes
horizontal.
35. APPLIED
ECONOMICS
DEMAND CURVE
The demand curve is a graph of the demand
schedule which shows the relationship
between the price and the quantity
demanded. The vertical axis, represents the
prices of an apparel goods while the quantity
demanded signifies in the horizontal axis.
36. APPLIED
ECONOMICS
DEMAND CURVE
Using the previous example in Table 1, we
can plot the Demand Curve:
*For example, Gaisano Mall of Davao will have an
advertisement through radio and television or social
media to inform the public that they will offer 50%
to 70% discounts on all apparel products including
clothes, footwear, toys, etc. to capture more
customers in the market.
37. Application
1. Freely form a group consisting of three to
four members.
2. Study and analyze the given demand
schedule of onions, and do the following tasks:
a. Compute the elasticity of demand with an
implication based on the estimated results.
b. Plot and graph the data from the demand
schedule.
c. Analyze the data and describe the demand
curve.
d. Write your answer (by group) in a 1 whole
APPLIED
ECONOMICS
38. Application
a. Compute the elasticity of
demand with an implication
based on the estimated
results.
b.Plot and graph the data
from the demand schedule.
c. Analyze the data and
describe the demand curve.
d.Write your answer (by
group) in a 1 whole yellow
paper
APPLIED
ECONOMICS
Quantity
Demanded
(in kgs)
Price
(Php)
100 50.00
90 100.00
80 150.00
70 200.00
60 250.00
50 350.00
40 300.00
Demand Schedule of Onions
42. Evaluation
Direction: From the choices inside the box, choose the
letter of the correct answer. Write your answers in a
separate sheet of paper.
APPLIED
ECONOMICS
a)Income
b)Supply
c) Quantity Demanded
d)Price
a)buyer
b)Demand Curve
c) Law of Demand
d)Elastic
a)Inelastic
b)Unitary
c) Perfectly Inelastic
43. Assignment
Ask this question to your parents/guardian or any
members of your family: “What product would you still
buy even if the price reaches higher than the usual?
Why would you still buy it?”
Write your parent’s/guardian’s (or any members of
their family) answer in a one-half crosswise yellow
paper.
APPLIED
ECONOMICS
44. THAT’S ALL FOR TODAY!
LOREM IPSUM
DOLO
LOREM IPSUM
DOLOR
LOREM IPSUM
DOLOR
APPLIED
ECONOMICS
