Applied Economics Week 3. q2

RICO JESUS T. PARILLA GR11.
GAS – SHAKESPEARE
APPLIED ECONOMICS
LEARNING ACTIVITY
Socio-economic factors affecting business and industry
QUARTER 2 (WEEK 3)
Activity 1
What can you say about them? Describe the similarities and differences and
answer the guide questions below.
 They’re both a store, where we are buying foods. But the differences are the
picture 1 is called a mini store but very few buyers like passers-by or even
the people in their community. Then the picture 2 called a Market grocery
but it’s a huge income because there are so many people buying in this
market, few of them brought boxes with groceries.
Guide Questions:
a. What is the socio-economic factor/s affecting the business shown in the
pictures?
 its affecting the income capacity of consumer because if consumers have
access to high incomes from employment and personal business ventures
then they are more likely to spend on luxurious product on the other hand
low income earners may not be able afford basic commodities let alone the
luxurious product.
b. Why do you think this is/are important in the business?
 Because its play a huge role in culture and society in general. They not only
take up the most amount of time in most people's lives, but they also help
create innovations and make important technological advancements. And
such a businesses like this ,thrive on excited and motivated employees
reaching for a common goal.
RICO JESUS T. PARILLA GR11. GAS – SHAKESPEARE
Activity 2
1. The total utility received from consuming 10, 11, and 12 tacos are
100,108,115, respectively. What is the average utility of consuming 11 tacos?
What about 12 tacos? What are the marginal utilities of the 11th and 12th
tacos?
GIVEN: the quantity consumed are- 10, 11 and 12 tacos; then
the total utility are-100,108 and 115
total utility
FORMULA: average utilities = number of units
108
SOLUTIONS: 11
= 9.81 -11th tacos
115
12 = 9.58 -12th tacos
- 108 – 100 = 8 11 - 10 = 1
- 115 – 108 = 7 12 – 11 = 1
8
- 1 =8 11th tacos
7
- 1 =7 12th tacos
2. The total utility of consuming 10 bottles of water is 200. The marginal

utility of consuming the 11th and 12th bottles of water is 5 and 4 respectively.
What are the total utilities of consuming 11 and 12 bottles of water?
GIVEN: the quantity consumed are – 10th, 11th and 12th bottles of water
the total utility – 200 for consuming 10 bottles of water; then
marginal utility – consuming 11th and 12th bottles of water are 5 and 4
respectively
total utility
FORMULA: average utilities = number of units
change ∈total utility

marginal utilities = change∈number of units consumed
SOLUTIONS:
= - 200 + 5 = 205 on the 11th bottle
= - 205 + 4 = 204 on the 12th bottle

Activity 3
Directions/Instructions: : Identify the business and industry located in your
own community and determine the possible socioeconomic factor/s affect the
business identified.
 Socio-economic factors are important characteristics which mostly influence

consumers. These factors are associated with the quality of life and
determine the behaviors, tastes, preferences, attitudes and lifestyles of
people living within a society. These economics factors have a high impact
on businesses, whether big or small. This is because the consumers are often
the heart of businesses and tend to affect the growth of all ventures.The
socio-economic factors have high impact on business and influence
consumers, then the different socio-economics factors are income capacity
of consumers, occupation, education level and economic growth. High
income learners are more likely to spend luxurious products compared with
the low-income earners. Occupation of consumers is largely related to the
income they earned. Entrepreneur must carry out a research on the
occupation of the customers. Positive economic growth rates will increase
spending and help businesses to grow. Consumers with higher education
tend to skilled and also have better jobs and income compared to those
without education. An entrepreneur must work to fulfill the demand of the
consumers.
Reflections:
In this activity I have learned that socio-economic factors are important
characteristics which mostly influence consumers. The quality of life and
determine the behaviors, tastes, preferences, attitudes and lifestyles of people
living within a society.

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RICO JESUS T. PARILLA GR11.

2. The total utility of consuming 10 bottles of water is 200. The marginal

change ∈total utility

= - 200 + 5 = 205 on the 11th bottle

= - 205 + 4 = 204 on the 12th bottle

 Socio-economic factors are important characteristics which mostly influence

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