BINANGONAN CATHOLIC COLLEGE
Binangonan, Rizal
DAILY LEARNING ACTIVITY
SENIOR HIGH SCHOOL DEPARTMENT
Name: Grazel Ann B. Ditablan.
Grade & Section: 12-OLMM
SUBJECT: APPLIED ECONOMICS
Day & Date Accomplished: March 3, 2022
Score: ___________
Parent/ Guardian Signature: ______________
Activity Title: Basic Principles of Demand and Supply (Graphing Exercise)
Learning Targets: Explain the law of supply and demand and illustrate how equilibrium price and quantity
are determined.
Reference Title: Applied Economics
Authors: Rosemary P. Dinio, PhD and George Villasis Page No’s: 18-26
Main idea to be learned:
The Market
A market is an interaction between buyers and sellers of trading and exchange. It is where the
consumer buys and the seller sell. The goods market is the most common type of market because it is
where we buy consumers goods. The labor market is where workers offer services and look for jobs, and
where employers look for workers to hire.
The market is important because it is where a person who has excess goods can dispose them to
those who need them. These interactions will lead to an implicit agreement between buyers and sellers
on volume and price. In a purely competitive market (similar products), the agreed price between a buyer
and a seller is also the market price or price for all.
Demand
Demand is the willingness of a consumer to buy a commodity at a given price.
The Law of Demand
Using the assumption “ceteris paribus” which means all other related variables except those that
are being studied at the moment and are held constant, there is an inverse relationship between the price
of good and the quantity demanded for that good. As price increases, the quantity demanded for that
product decreases.
Example:
Price per Bottle
Number
Bottles
₱0
6
2
5
4
4
6
3
8
2
10
1
of
Quantity Demanded (In Bottles)
10
8
6
4
2
1
2
3
4
Quantity Demanded (In Bottles)
Activity:
1. Make a graph of the following data on the demand of frozen chicken per week in Binangonan.
Price per Kg.
Php 50
60
70
80
100
120
Demand in Kg.
100
75
50
25
15
5
2. Make your own Demand Schedule for chicken using the original demand schedule of chicken and
plot it in the same graph. (Speculating that there is a change in price of a chicken / kg.)
5
Answer:
Quantity Demanded (In Frozen Chicken)
140
130
120
120
110
100
Price per Kg.
100
90
80
80
80
70
70
60
60
60
50
40
20
0
5
15
25
50
75
100
Demand (in Kg.)
Figure 2.1. Demand Curve of Frozen Chicken
Price per Kg.
Demand in Kg.
₱60
100
70
75
80
50
90
25
110
15
130
5
Table 2.1. Demand Schedule of Frozen Chicken
As can be seen in Table 2.1, the relationship between the price of chicken and the
quantity that the people are willing to buy is changing. There is a negative relationship between
the price and the quantity demanded. A lower price allows the consumer to buy more, but as
price increases, the amount the consumer can afford to buy tends to go down.
As can be seen in Figure 2.1, the downward slope on the curve indicates that the price
of chicken per kg. increases and the demand for this decreases.