Applied Economics

Application of Supply and Demand

Prayer: GOD IS SO GOOD
Energizer: Charlie Bear Agadoo
LESSON OBJECTIVES

 C. Explain the law of supply and demand

A . Appreciate the importance of
understanding the law of supply and
demand in responding to one’s daily
needs
 P.Write underlying principles to explain
the law of supply and demand.
GUESSING GAME
Unfold the hidden letters in the mystery boxes to reveal
the mystery words.

CLUES:

1- the application of economic theories to the real world

2- a set of theories formulated by economists as advice to planners
3- involves utilizing theories from the economics field of study to
various industries, such as business or finance
3 PICS ONE WORD

______ _______ _______ ________ __________ __________

______ _______ ________ ________ _________ ___________

GROUP ACTIVITY
Explaining the Law of
Supply and Demand
GROUP 1
GROUP 2
GROUP 3
 The theory of supply and demand is recognized almost universally as
the first step toward understanding how market prices are determined
and the way in which these prices help shape production and
consumption decisions-the decisions that make up not only the
skeleton, but also the flesh and blood of the economic system.
Austrian economics thoroughly agrees with this. However, when we
dig just a little below the surface of the “law” of supply and demand,
we encounter difficulties that have, directly or indirectly, led
Austrians to explain the determination of prices differently from how
it is often, at least implicitly, presented. I will try to explain the sense
in which Austrians are unhappy with the textbook presentations of
supply and demand—and are yet fully in agreement with the general
emphasis on supply and demand as being the key to economic
understanding.
QUESTIONS

 1. What is Law of Supply and Demand?

 2.Cite specific situation where the law
applies.
 3.How the Law affect the consumers and
producers?
ANALYSIS
 1.Whatis your insights on Law of Supply
and Demand based on your readings?
 2.In
what aspects of the people’s lives the
law of supply and demand affects?
 3.Do you think law of supply and demand
influences your needs and wants?
ABSTRACTION

Based on what you learned

today, state in your words or
explain the Law of Supply and
Demand.
APPLICATION

 In your respective group, come up with

a discussions on how the Law of Supply
and Demand affects you as a person in
connection to your daily quest for
survival. Share it to the class in a
presentation.
EVALUATION
I. Evaluation:
Explain the Law of Supply and Demand.
Rubric for Scoring:
Specific
Point to be 5 points
Awarded
3 points- 1 Given three Given two Given one Given any Showed
point for correct and correct and correct and idea that is attempts to
each idea important important important of less explain the
but not ideas to ideas to ideas to importance Law of
more than explain The explain The explain The to explain Supply and
three ideas Law of Law of Law of the Law of Demand
supply and supply and supply and Supply and
Demand. (3 Demand. Demand. demand (0)
points) (2 points) (1 point) (1 point)
1 point No erasures

1 point Answers were given in correct paragraph format.

ASSIGNMENT

 Make a research on the web or any

reading materials available on how
equilibrium price and quantity are
determined in the application of
Law of supply and Demand.