The document covers basic concepts of applied economics for grade 11, focusing on the laws of supply and demand and factors influencing economic situations. It defines demand as the amount of goods consumers are willing to purchase at a given price, and supply as the willingness of sellers to produce and sell at various prices. Additionally, it discusses price elasticity of supply, explaining how it measures responsiveness of quantity supplied to price changes.

1. Applied Economics
GAS-
Grade 11 - Copernicus

2. I. OBJECTIVES
Getting the slope of the
demand Curve

3. Content Standards;
The law of supply and
demand, and factors
affecting the economic
situation.

4. A. Performance Standards;
conduct a survey of current
economic situations within
the vicinity

5. C. Learning Competencies/
Objectives
Write the LC code for each:
Analyze market demand,
market supply and market
equilibrium,
ABM_AE12-Ie-H3

6. D. Learning Objectives
At the end of the lesson, the learners should be able to:
1. determine the concepts of market demand
2. state the laws of demand
3. construct graph and analyze demand
4. solve problems on demand

7. What is Demand?
Demand refers to the amount of goods and services
consumers are willing to purchase given a certain price.
(Demand ket iso ti kabaelan dagiti gumatang iti lako iti
nailatang a presyo kadagiti kayat da nga gatangen)

8. Before we start our new
topic for today, let us
watch this short video
about supply.

10. What is Supply?
 It refers to the willingness of sellers to produce and sell
at various possible price
 The law of supply demonstrates the quantities that will
be sold at a given price.
 The higher the price, the higher, The quantity supplied
and vice versa.
 Producers supply more at a higher price because
selling at higher quantity at a higher price increases
revenue.

11. Let us take the data of a supply curve.
Table 1. Supply
scheduled for
rice
Point Price Quantity
A 20 100
B 40 200
C 60 300
D 80 400
E 100 500

13. Supply scheduled for rice
Supply scheduled for rice

14. Price Elasticity of Supply (PES)
The measure of the responsiveness
of quantity to a change in price.
It is the percentage change in supply
as compared to the percentage
change in price of a commodity.

15. Price Elasticity of Supply (PES)
• The measure of the responsiveness of quantity to a change in price. It is the percentage change in supply as
compared to the percentage change in price of a commodity. PES = % %
𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑆𝑢𝑝𝑝𝑙𝑖𝑒𝑑
If supply is elastic, producers can increase output without a rise in cost or a time delay. If
𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑃𝑟𝑖𝑐𝑒
supply is inelastic, firms find it hard to change production in a given time period.
https://www.intelligenteconomist.com/price-elasticityof-supply PES = % 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑆𝑢𝑝𝑝𝑙𝑖𝑒𝑑
% If Pes > 1 = supply is price elastic Pes = 0 = supply is perfectly inelastic Pes = infinity =
𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑃𝑟𝑖𝑐𝑒
supply is perfectly elastic Pes < 1 = supply is price inelastic 13 PRICE ELASTICITY OF SUPPLY ELASTIC SUPPLY
INELASTIC SUPPLY Perfectly Inelastic Supply Perfectly Inelastic Supply

16. Price Elasticity of Supply (PES)
If supply is elastic, producers can increase
output without a rise in cost or a time
delay. If supply is inelastic, firms find it
hard to change production in a given time
period

17. Price Elasticity of Supply (PES)
PES = % %
𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑆𝑢𝑝𝑝𝑙𝑖𝑒𝑑 𝑐ℎ𝑎𝑛𝑔𝑒
If Pes > 1 = supply is price elastic Pes = 0 = supply is
𝑖𝑛 𝑃𝑟𝑖𝑐𝑒
perfectly inelastic Pes = infinity = supply is perfectly elastic Pes
< 1 = supply is price inelastic

18. Price Elasticity of Supply (PES)
PRICE ELASTICITY OF SUPPLY
ELASTIC SUPPLY INELASTIC SUPPLY
Perfectly Inelastic Supply
Perfectly Inelastic Suppl

19. • PRICE ELASTICITY OF SUPPLY ELASTIC SUPPLY INELASTIC SUPPLY
Perfectly Inelastic Supply Perfectly Inelastic Suppl