Scribd
Upload
51 views12 pages

2 Srib Upload 1DEMAND AND SUPPLY

This document discusses microeconomics as a field of study. It covers the law of demand, including the concepts of demand schedule, demand curve, and how the slope of the demand curve is calculated. It also discusses factors that can cause shifts in demand.

Uploaded by

Neri Sangalang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
51 views12 pages

2 Srib Upload 1DEMAND AND SUPPLY

This document discusses microeconomics as a field of study. It covers the law of demand, including the concepts of demand schedule, demand curve, and how the slope of the demand curve is calculated. It also discusses factors that can cause shifts in demand.

Uploaded by

Neri Sangalang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 12

ECONOMICS AS

A FIELD OF STUDY
Micro economics

By Engr. Ma. Nerissa P. Sangalang, RCE,LPT,MBA


Law of Demand

• Market- the place where buyers


and sellers meet and trade
• Buyers – search goods that they
can pay with their money
• Sellers – produces the goods that
consumer look for

09/07/2020 Microeconomics module by Engr. N. Sangalang 3


Law of Demand

• Demand – the willingness of the


buyer to pay for a certain good
• Supply – The willingness of the
seller to produce

09/07/2020 Microeconomics module by Engr. N. Sangalang 4


Demand Schedule and Demand Curve

• A demand schedule is a table that


shows the quantity demanded at
different prices in the market.
• A demand curve shows the
relationship between quantity
demanded and price in a given market
on a graph.

09/07/2020 Microeconomics module by Engr. N. Sangalang 5


Demand Schedule and Demand Curve

DEMAND SCHEDULE
POINT PRICE IN PHP QUANTITY
A 4 0
B 3 10
C 2 20
D 1 30
E 0 40

09/07/2020 Microeconomics module by Engr. N. Sangalang 6


Demand Schedule and Demand Curve

DEMAND CURVE

09/07/2020 Microeconomics module by Engr. N. Sangalang 7


The Law of Demand

• It states that as price increases, quantity


demanded or the willingness to buy the
product decreases, holding all other factors
constant.

• It is the inverse relationship of price and


quantity demanded.

09/07/2020 Microeconomics module by Engr. N. Sangalang 8


Slope of the Demand Curve

DEMAND CURVE

RISE ∆y ∆P P2-P1
SLOPE = = = =
RUN ∆x ∆Q Q2-Q1
Where:
P1 and Q1 stand for initial price and quantity of the product, respectively;
and

P2 and Q2 are the final price and quantity of the product, respectively;
∆ is a symbol for change

09/07/2020 Microeconomics module by Engr. N. Sangalang 9


Demand Schedule and Demand Curve

Slope of the Demand for Bread

3-4 -1
slope = =
10-0 10

09/07/2020 Microeconomics module by Engr. N. Sangalang 10


Shifts in Demand and their Determinants

• Changes in the average income


• Changes in the size of population
• Changes in tastes and preferences
• Changes in consumers’ speculations

09/07/2020 Microeconomics module by Engr. N. Sangalang 11


Praise and glorify GOD
always!
END

You might also like