BASIC MICROECONOMICS– CORE 1

DEMAND AND SUPPLY

Leader:
Mercado, Mary Grace

Members:
Gabia, Jeffrey
Gozar, Clifford Diether
Mangubat, Danielle Daye
Muje, Lara Jean

MS. CLAUDETTE G. SIM, CMITAP

Instructor
 MARKET ANALYSIS

TABLE OF CONTENTS

MARKET ANALYSIS
Demand Define

Law of Demand

Determinants of Demand

Demand and Supply Schedule and Curve

Law of Supply

Determinants of Supply

Supply Schedule and Curve

Dynamics of Demand and Supply

The Market Mechanism

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 MARKET ANALYSIS

 Market is a mechanism through which buyers and sellers interact in order to determine the
price and quantity of a good or a service.
 Price the value of a good in terms of money.

Demand

 Demand for a product is defined as the quantity that buyers are willing to buy.
 The demand schedule shows the quantity of the product demanded by a consumer or an
aggregate of consumers at any given price.
 Demand Function shows how the quantity demanded of a particular good respond to price
change.
 Demand Curve is a graphical representation of the demand schedule and therefore
contains the same price s and quantities presented in the demand schedule.


The Law of Demand

 As the prices increases, the quantity demanded of the product decreases, but as price
decreases, the quantity purchased will increase.
 Ceteris Paribus, as defined by J. Bruce Linderman, is Latin for “all else being equal”.
 The economic real world is very complex; ceteris paribus simplifies such study by letting us
ignore other real-world details while we look on specific factors.
Factors that also influence the quantity of demand and supply
 1.income;
 2.expectation on future prices.
 3.prices of related goods like substitutes and complements;
 4.size of the population;
 5.quality of the product;
 6.taste and preferences
 7. promotion and / or advertisement;
 8. religion
 9. customs and traditions and
 10. fad or fashion.

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 MARKET ANALYSIS

 The Law of Demand now states ,”Assuming other things constant, price and quantity
demanded are inversely proportional”

Supply

 The supply of a product is defined as the quantity that sellers are willing to sell.
 Supply Schedule shows the quantities that are offered for sale for various prices.
 The aggregate supply quantities of a group of sellers are presented as a market supply
schedule.
 The supply curve contains the exact prices and quantities in the supply schedule.
 As the price increases the quantity supplied increases, and as the price decreases , quantity
supplied decreases

The Law of Supply

Non-price determinants that influence the supply

 1.) Cost of production
 2.) Availability of economic resources
 3.) Number of firms in the market ;
 4.) Technology applied
 5.) Producer’s goals
 6.) Taxes and subsidiaries
 7.) Price of the product; and
 8.) Price expectation
 The Law of supply now states “ other things assumed as constant, price and quantity
supplied are directly proportional


Market Equilibrium
 Demand and Supply should eventually be analyzed as one since the market operates within
the forces of both demand and supply increase in the number of sellers in the market and
decrease in the cost of production.
 Equilibrium Point – point of equality.

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 MARKET ANALYSIS

The reporters conduct an oral presentation to give information or explanation about the
topic given. At the end of the lesson, a question and answer portion will take place between the
reporters, the students and the professor to tackle or to give clarification to the topic.

CLASS EVALUATION

INDIVIDUAL TASKS

Name Task Done Leader’s Grade

(Alphabetically Arrange) (10 Points)
Gabia, Jeffrey

Gozar, Clifford Diether

Mangubat, Danielle Daye

Mercado, Mary Grace

Muje, Lara Jean

Mercado, Mary Grace

Leader

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 MARKET ANALYSIS

INDIVIDUAL PRESENTATION GRADE

Individual Presentation
Name Content Mastery Discussion Total Points Final
(Alphabetically Arranged) (20 (10 (20 points)
Earned Rating
points) points)

Gabia, Jeffrey

Gozar, Clifford Diether

Mangubat, Danielle Daye

Mercado, Mary Grace

Muje, Lara Jean

GROUP PRESENTATION GRADE

Individual Paper Powerpoint Individual Final Rating

Presentation Presentation Presentation Tasks

Gabia, Jeffrey

Gozar, Clifford Diether

Mangubat, Danielle
Daye
Mercado, Mary Grace

Muje, Lara Jean

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 MARKET ANALYSIS

MS. CLAUDETTE G. SIM, CMITAP

Instructor

Date : ___________________

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