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Apec Mod4 (Ans)

Applied Economics Module 4

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Kyle Gacusana
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30 views4 pages

Apec Mod4 (Ans)

Applied Economics Module 4

Uploaded by

Kyle Gacusana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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KYLE D.

GACUSANA NOVEMBER 25, 2020

MDL ABM 11-C APPLIED ECONOMICS

QUARTER 1 – MODULE 4
IMPLICATIONS OF MARKET PRICING IN MAKING ECONOMIC DECISIONS

 PRE-TEST
I. GRAPH ANALYSIS
1. If the supply rate is greater than the demand rate
2. If the demand rate is greater than the supply rate
3. Chart Analysis
a. The green broken line/ dash lines
b. The green straight line
c. The point where the demand curve and supply curve intersect
4. Term Definition
a. Surplus refers to an economic problem where the quantity supplied is greater than the
quantity demanded, thus, resulting to oversupply
b. Shortage refers to an economic problem where the quantity demanded is greater than
the quantity supplied, thus, resulting to scarcity
c. Equilibrium price is the price where both the consumer and the producer were
favored. It is where the quantity demanded is equal to the quantity supplied.
Consumers can save money and producers can earn profit at this rate.
II. MULTIPLE CHOICE
1. A
2. B
3. C
4. B
5. D

0.6= Qs/3 percent


(0.6) (3 percent) =Qs
Qs = (0.6) (3 percent)
Qs= 0.18 or 18 percent

 LOOKING BACK TO YOUR LESSON


I. TRUE OR FALSE
1. TRUE
2. FALSE
3. FALSE
4. TRUE
5. TRUE
6. TRUE
7. TRUE
8. TRUE
9. TRUE
10. TRUE

II. DEFINITION
1. Price Elasticity is the measure of how consumers react to the prices of products and services.
2. Price Elasticity of Demand, also known as PED or Ed, is a measure in economics to show
how demand responds to a change in the price of a product or service.
3. Price Elasticity of Supply, also called PES or Es, is a measure that shows how the quantity of
supply is affected by a change in the price of a good or service.

 ACTIVITIES
I. PROBLEM SOLVING
1. Shortage
2. PED = Qd/P

PED = 12 percent/8 percent


PED = 0.12/0.8
PED= 1.5 (Elastic)
This means that the percentage change in price brings about a more than proportionate
change in quantity demanded.
3. PES = Qs/P
PES = 8 percent/ 4 percent
PES = 0.08/0.04
PES = 2 (Elastic)
If supply is elastic, producers can increase output without a rise in cost or a time delay.
II. PRICE ELASTICITY
1. Alcohol and Soap
a. XED = Qd of x/ P of y

XED = 10 percent/ 20 percent


XED = 0.1/0.2
XED = + 0.5 (B)
b. The positive sign shows that the increase in price of ethyl alcohol will increase
the demand of hand soap.
c. Substitute goods
2. Calls
a. PED = Qd/ P
PED = 35 percent/ 20 percent
PED = 0.35/0.2
PED = 1.75
b. The PED is elastic because it is more than 1, thus, - the percentage change in
price brings about a more than proportionate change in quantity demanded.
 CHECK YOUR UNDERSTANDING
I. IDENTIFICATION
1. Demand Curve/Slope
2. Law of Supply
3. Unitary Elastic Demand
4. Cross Price Elasticity of Demand
5. Normal Goods
6. Inelastic Demand
II. ENUMERATION

ELASTIC GOODS INELASTIC GOODS


1 Soft drinks 1 Eggs
2 Chips 2 Flour
3 Cars 3 Medicine
4 Houses 4 Electricity
5 Gadgets 5 Gas
 POSTTEST
I. TRUE OR FALSE
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. FALSE
6. TRUE
7. TRUE
8. TRUE
9. TRUE
10. FALSE

 REFLECTIVE LEARNING SHEET


My family is also a victim of the skeletal workforce, so my dad’s income has roughly
decreased. We do every way just to budget our family’s allowance and make it last for the whole
month. First, we limit our food and utility consumption as cheaper as possible, but not to the
point that our health was not taken care of. We use now the coal stove to cook our foods and not
the electric stove and rice cooker. We are not picky anymore on the product’s brand just to save
money. Also, my family set aside our wants and just focusing on the things we crucially need. Me
and my sister also helped our parents by selling our unused valuables. Lastly, we borrow money
from family, friends or some institutions if our budget was not enough for the month. However,
we do our best to pay our debt at the agreed date. Despite the increasing price of the commodities
that won’t fit our family’s budget in this pandemic, my family is economically practical to
survive amidst the pandemic.

 ADDITIONAL ACTIVITIES
1. Banana Turon
a. Qd = 40 pieces/50 pieces = 0.8 or 80 percent
P = 4 pesos/6 pesos = 0.67 or 67 percent
PED = Qd/P
PED = 80 percent/ 67 percent
PED = 1.19
b. The PED is elastic, it means that the rise of price of Christine’s banana turon
results to a great change on the demand. Even though she earned more profit than
before, she needed to increase the demand of her sales.

2. Chocolate Bar
a. The price of her chocolates should increase up to 110 pesos only since any
amount larger than that will greatly affect the demand rate. It’s because the PED
of her chocolates is elastic and any change in price would also give a huge
change of the number of her buyers.
b. The law of demand applies to this situation because Joy Lima must meet the fair
price of her product that would give her more profit and not cause any
tremendous change on quantity demanded.

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