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Market Demand, Market Supply, and Market Equilibrium: What I Know

This document provides information on market demand, market supply, and market equilibrium. It defines key terms like demand, factors of demand, law of demand, supply, factors of supply, and law of supply. Graphs and analyses are provided to illustrate the inverse relationship between price and quantity demanded, and the direct relationship between price and quantity supplied. The document also gives an example of calculating the equilibrium price and quantity using supply and demand equations.

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Laarnie Quiambao
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134 views

Market Demand, Market Supply, and Market Equilibrium: What I Know

This document provides information on market demand, market supply, and market equilibrium. It defines key terms like demand, factors of demand, law of demand, supply, factors of supply, and law of supply. Graphs and analyses are provided to illustrate the inverse relationship between price and quantity demanded, and the direct relationship between price and quantity supplied. The document also gives an example of calculating the equilibrium price and quantity using supply and demand equations.

Uploaded by

Laarnie Quiambao
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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MODULE 3

MARKET DEMAND, MARKET SUPPLY, AND MARKET EQUILIBRIUM

WHAT I KNOW
1. A
2. A
3. D
4. A
5. C

WHAT’S NEW
1. How do you determine the prices of goods and services?
 The prices of goods and services are determined by the law of supply and demand and also
determined by the regulation of the government.
2. What will happen if the prices of basic commodities will keep on increasing?
 When the prices of basic commodities will keep on increasing, the demand to these basic commodities
goes down.
3. Is there any effective way of keeping the prices of basic commodities at levels that are accessible to the
masses?
 I believe determining the demand of consumers is a one way to keep the prices of basic commodities at
levels that are accessible to the masses because determining the demand will allow you to know how
willing consumers are to spend a certain price on a particular good or service.

WHAT’S MORE
A.
Price of Pork Quantity in Demand
(per kilo) (in kilos)
230.00 5
210.00 10
200.00 15 Demand of Pork
190.00 20 (Per Kilo
180.00 25 30

25
Analysis: When the price of the pork decreases,
20
the demand of pork increases. Thus, the price is PRICE
inversely proportional to quantity demanded. 15

10

5
B.
Price of Bangus Quantity in Supplied 0
170 180 190 200 210 220 230 240
(per kilo) (in kilos)
180.00 7
170.00 6.5 QUANTITY
160.00 6
Supply of Bangus
150.00 5 (Per Kilo
140.00 4 8
7
6
Analysis: When the price of bangus goes up, PRICE 5
the supply of bangus goes up. Thus, the price is
4
directly proportional to the quantity supplied.
3
2
1
0
135 140 145 150 155 160 165 170 175 180 185

QUANTITY

WHAT I HAVE LEARNED


1. DEMAND
2. FACTORS OF DEMAND
3. LAW OF DEMAND
4. SUPPLY
5. FACTORS OF SUPPLY
6. LAW OF SUPPLY
7. MARKET EQUILIBRIUM
WHAT I CAN DO
Direction: Determine the price and quantity equilibrium in the market of the given equation:
Qd = 68 – 6P Qs = 33 + 10P
Calculate the market equilibrium price and quantity: Substitute ‘P=30’ in quantity demanded (Qd) or in
Qd=Qs quantity supplied (Qs)
68+6P = 33+10P Qd= 68-6P
-6P-10P = 33-68 Qd= 68-6(-2.19)
16 = -35 Qd= 68-13.14
P=-35/16 Qd= 54.86
P= -2.19 Thus, the equilibrium pice is P= -2.19 and
equilibrium quantity is Q= 54.68
ASSESSMENT
I.
1. A
2. B
3. A
4. B
5. C
6. D
7. A
8. B
9. D
10. C

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