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Melc 4 Applied Economics

This document provides a learning activity sheet on applied economics. It includes activities and assessment questions about market pricing and implications for economic decisions. The activities examine how price, demand, and supply change in different situations. Students are asked to identify their responses if prices increase for various products and services. They also determine point elasticity from demand schedules and analyze a paragraph about responding to price elasticity. The assessment includes multiple choice, true/false, and matching questions to evaluate understanding of elasticity concepts.

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CLARISE LAUREL
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
160 views

Melc 4 Applied Economics

This document provides a learning activity sheet on applied economics. It includes activities and assessment questions about market pricing and implications for economic decisions. The activities examine how price, demand, and supply change in different situations. Students are asked to identify their responses if prices increase for various products and services. They also determine point elasticity from demand schedules and analyze a paragraph about responding to price elasticity. The assessment includes multiple choice, true/false, and matching questions to evaluate understanding of elasticity concepts.

Uploaded by

CLARISE LAUREL
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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APPLIED ECONOMICS

Quarter 1 – Week 5
Learning Activity Sheet
Name: __________________________ Grade & Section: _____________

Implications of Market Pricing in Making Economic Decisions

Activity 1: In the following situations, identify whether there is an INCREASE or DECREASE in


price, demand or supply.
1. If the price increases, the demand will _____________.
2. If the price increases, the supply will _____________.
3. The use of technology in production will cause _____________ in supply and (4.) _____________ in
price.
5. Surplus may cause price to _____________.
6. Shortage may cause price to _____________.
7. Increase in income may _____________ demand.
8. The price of coffee is expected to increase next week, the demand for coffee this week is expected to
_____________.
9. The demand for umbrellas _____________ during rainy season.
10. The price of product A increases so the demand for its complementary product will _____________.

Activity 2: What if the price of the products/services listed in column 1 increase its price, what will
you do? Let us identify your responses. Based on what is listed in the column 1, write what is your
decision in the column 2 and in column 3 briefly explain the reason in making such decision. Your
decision could be:
1. Ikaw pa rin (if you still choose to buy or avail the product/service)
2. Buti pa siya. (if you choose to buy another product or an alternative)
3. Sige na nga. (if you have no choice but to buy the product)
4. Huwag na lang. (if you decide not to buy the product and not to find alternative)

SITUATIONS YOUR REASON FOR YOUR DECISION


RESPONSE/DECISION
1. Your favorite chocolate
increases its price by
₱30.00

2. The price of rice


increases by ₱10.00 per
kilo

3. Your mother’s
maintenance medicine
increases its price by 10
%

1
Activity 3: Given the demand schedule below, determine the point elasticity in the different situations.
Show your solution: (5 pts each).

Situation Price Quantity Demanded Answer the following:


I 10 30
II 30 25 a. Situation I & II
III 40 20 b. Situation II & 4
IV 55 15

A. B.

Activity 4: Read and analyze the paragraph below. Give your reaction using 8-10 sentences.

HOW DO YOU RESPOND TO PRICE ELASTICITY?


People have unlimited needs and wants for their personal satisfaction and because of that the prices
of products easily get changed. Everyone is affected with the new normal in the market. The prices of
products have become very expensive since the outbreak of the pandemic, not only in our locality, but in the
whole world.
If your income or the income of your family is not enough to purchase the basic commodities needed
by your family, what goods would you buy, instead? What economic or marketing strategies would you
apply? How would you respond to the price changes of these commodities?
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ASSESSMENT:

I. Choose the letter of the correct answer. Write your answer on the space provided before
each number.

_______ 1. The degree of change in demand or supply due to the change in its determinants
a. Inelastic b. Elasticity c. Cross elasticity d. Price elasticity
_______ 2. The main determinants of supply and demand
a. Technology b. Income c. Price d. Quantity
_______ 3. The elasticity coefficient of 0.7 means
a. Elastic b. Inelastic c. Perfectly elastic d. Perfectly inelastic
_______ 4. If the computed price elasticity is more than 1. What does it mean?
a. Elastic b. Unitary c. Perfectly elastic d. Perfectly inelastic
_______ 5. The elasticity is said to be _______ if the coefficient is 1.
a. Elastic b. Unitary c. Perfectly elastic d. Perfectly inelastic

II. Determine which of the following goods or services are likely to have elastic and inelastic
demands. Put a check () on the column.

GOODS/SERVICES ELASTIC DEMAND INELASTIC DEMAND


1. Softdrinks
2. Chocolate
3. Water
4. Rice
5. Chips

III. True or False: Read the sentences carefully. Write TRUE if the statement is correct and
FALSE if the statement is incorrect.

1. Elasticity of demand refers to the change in demand when there is a change in another
factor such as price or income
2. Examples of elastic goods include gasoline, while inelastic goods are items like canned
goods and vitamin c tablets
3. Inelastic demand is when a demanded quantity for masks changes by a greater
percentage compared to its percentage change in price
4. Unit elastic is when a percentage change in demand equals the price.
5. The demand curve shows how quantity demanded for apple responds to price
changes. The flatter the curve, the more elastic is the demand for an apple.

Prepared by: Checked by:


CLARISE D. LAUREL MYLA V. COMBALICER, EdD
Subject Teacher Principal II

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