Applied Economics-Q3-Module-3

11 SENIOR HIGH SCHOOL
APPLIED
ECONOMICS
Quarter 3 – Module 3
Market Demand, Market Supply
and Market Equilibrium
NegOr_Q3_AppliedEconomics11_Module3_v2
Applied Economics – Grade 11
Alternative Delivery Mode
Quarter 3 – Module 3: Market Demand, Market Supply, and Market Equilibrium
Second Edition, 2021
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i NegOr_Q3_AppliedEconomics11_Module3_v2
I
This module was designed to provide you with fun and meaningful opportunities for
guided and independent learning at our own pace and time. You will be enabled to process
the contents of the learning resource while being an active learner.
The module is intended for you to analyze market demand, market supply and market
equilibrium.
1 NegOr_Q3_AppliedEconomics11_Module3_v2
I
This module was designed to provide you with fun and meaningful opportunities for
guided and independent learning at our own pace and time. You will be enabled to process
the contents of the learning resource while being an active learner.
The module is intended for you to analyze market demand, market supply and market
equilibrium.
I
Pre-assessment:
Directions: Identify what is asked in each item. Write the letter of the correct answer in your
notebook.
1. It refers to the quantities of a particular good or service that consumers are willing and
able to buy different possible prices.
A. Demand B. Supply
C. Income D. None of these
2. What curve does a demand illustrate?
A. Downward Sloping B. Upward Sloping
C. Straight Line C. All of these
3. What is your analysis?
Statement I: More sellers in a market – decrease supply.
Statement II: Fewer sellers in a market – increase in supply.
A. Both statements are true B. Only statement I is true
C. Only statement II is true D. Both statements are false
Statement I: When the price goes up the supply goes up.
Statement II: When the price goes down the supply goes down.
A. Both statements are true B. Only statement I is true
C. Only statement II is true D. Both statements are false
5. Buyers and sellers transact in a market when they agreed on the price of the commodity
and the amount to be sold and bought. What basic principles in economics does the statement
express?
A. Law of Supply B. Law of Demand
C. Equilibrium Price D. Price Disequilibrium
’s In
Have you ever wondered who sets the prices for the products you buy? Many people
believe that the government determines how high or low prices should be, however this is not
always the case. For example, the government may only limit the pricing of rice, gasoline,
and apartment rent, but the prices of the majority of items are set by the market.
A market price is one that is solely set by supply and demand. It also implies that the
government had minimal influence over the price; yet, what if the government decides on a
price that is higher than the market price? Who would be impacted by this? What effect will
this have on the demand and supply for that particular commodity or service?
’s New
Task 1: Picture Analysis
Direction: Analyze the picture in answering the questions below.
Photo taken by (Gumban, 2021)
1. How do you determine the prices of goods and services?

___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________
2. What will happen if the prices of basic commodities will keep on increasing?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
_______________
3. Is there any effective way of keeping the prices of basic commodities at levels that are
accessible to the masses?
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________
is It
Market Demand, Market Supply and Market Equilibrium
Market Demand
The demand for a product and who wants to buy it is referred to as market demand.
This is determined by how eager customers are to pay a specific price for a product or
service. Price rises in tandem with market demand. When demand falls, the price will fall as
well.
What is demand?
Demand is an economic principle referring to a consumer’s desire to purchase goods
and services and willingness to pay a price for a specific good or service (The Investopedia
Team, 2021).
Demand tells us what people want. It also tells us what they can buy at a certain time
and place because it involves buying and at what price people can buy it or are willing to buy
it.
Factors of Affecting Demand

According to Econport n.d., “Even though the focus in economics is on the
relationship between the price of a product and how much consumers are willing and able to
buy, it is important to examine all of the factors that affect the demand for a good or service.”
These factors include:

1. Price of the Product
The price of a product and the amount of product that consumers are willing and able
to buy have an inverse relationship. Consumers prefer to buy more of a low-cost goods and
less of a high-cost product.
2. Changes in Income
People’s earnings have an impact on how much or how little they buy. A factory
worker, for example, makes ₱15,000.00 per month, while a businessman earns ₱40,000.00.
This means that a factory worker has less money and can only buy a fraction of what a
businessman can. When a factory worker’s pay rises, he can afford to buy more. The demand
for goods and services changes in response to changes in income. As a result, as income rises,
consumers buy more, and as income falls, consumers buy less.
3. Changes in the Number of Buyers
More people equals more demand for products and services, while fewer people
equals less demand. For example, during the school year, a pizza restaurant near a university
will have increased demand and consequently higher sales during class days. However during
the summer, when fewer students are in school, the demand for pizza reduces as the number
of customers in the vicinity decreases.
4. Tastes and Preferences
When individuals enjoy or prefer a product or service, demand rises. Advertisement
and fashion have a big influence on these interests and inclinations. There are numerous
factors that might alter one's tastes and inclinations, causing people to purchase. For instance,
if a celebrity supports a new product it might influence the people to like and want it, thereby
increasing the demand for a product.
5. Price of Related Goods

People tend to buy substitute products, when the price of a certain good increases.
Ayungon rice 128 and Masipag, for example, are substitute products for some people. If the
price of Masipag rises, Ayungon rice 128 may become more appealing. When two items are
replacements, the price of one good and the demand for the other good have a positive
connection.
The Law of Demand

When a product's price falls, consumers buy more of it, and when it rises, they buy
less. According to the law of demand, as the price of a commodity rises, demand falls, and
when the price of a commodity falls, demand rises.
When price Demand When price Demand

goes up… goes down… goes down… goes up…
Figure 1. Law of Demand
Why is the Demand Curve Downward Sloping?
The Demand Curve
A demand curve is a schedule of the willingness and capacity of a consumer to buy a

commodity at alternative prices at a given point in time other things held constant. The
demand curve focuses on the relationship between the quantity demand and the price of the
commodity at a given point in time other things held constant. The demand curve shows a
negative relationship between the price of the goods and the quantity demand. Specifically, as
the price of a commodity decreases, the quantity demand increases and when the price
increases, the quantity demand decreases.
Graph 1. Demand Curve, (NetMBA, n.d.)
Quantity Demanded
Is the amount (number of units) of a product that a household would buy in a given
time period if it could buy all it wanted at the current market price.
A demand schedule is a table showing how much of a given product a household would be
willing to buy at different prices. Demand curves are usually derived from demand schedules.
Example:
NINA’S DEMAND SCHEDULE FOR
TELEPHONE CALLS
Price Quantity Demanded
(₱ per call) (Calls per month)
0 30
0.50 25
3.50 7
7.00 3
10.00 1
15.00 0
Table 1. Nina’s Demand Schedule.
Graph 2. Nina’s Demand Curve.
The demand curve shows that when the price per call increases the demand for calls
decreases.
Changes in Demand Curve
A. Demand shifts to the right

An increase in demand shifts the demand curve to the right, and raises price and
output.
Graph 3. Demand Shifts to the Right (Economics Online, 2020).
B. Demand shifts to the left
A decrease in demand shifts the demand curve to the left and reduces price and
output.
Graph 4. Demand Shifts to the Left (Economics Online, 2020)
Market Supply
When economists discuss supply, they are referring to the number of goods or
services that a producer is willing to provide at a price. The price is the amount received by
the producer for selling one unit of a good or service. Almost often, a price increase leads to
an increase in the quantity given, while a decrease in price will decrease the quantity
supplied.
What is supply?
Supply is the number of quantities of the product and services that is offered for sale
at all possible prices in the market in a given period of time and place. Supply implies the
ability and willingness of sellers to sell.
Factors of Affecting Supply

According to Gabas (2020), the factors affecting supplies are:
1. Technology
This refers to the method of production or how something is produced. Having
modern technology means being able to produce more. Manufacturing is the reason
that you’re able to use many of the products as well as enjoy the services that you do
today. However, the introduction of technology into the manufacturing industry has
helped take it to an entirely new level. Not only has it made it more interesting in
terms of innovation, but it has also enabled quicker and more efficient ways in
operating. Better technology means more supply produced and less cost of producing
theses goods.
2. Cost of production
. This refers to the things a producer has to spend on to keep making goods and
services. These are: raw materials, labor and factory overhead. An increase in
production cost makes it harder for the producer because he/she has to pay more to
keep producing. This is why when the cost of producing goes up, the supply of goods
most likely goes down.
When cost of production cost goes up the supply goes down and when
production cost goes down the supply goes up.
3. Number of sellers
More sellers or more factories in a market means an increase in supply and
fewer sellers in a market decreases supply.
4. Taxes and subsidies

Certain taxes increase the cost of production. Higher taxes discourage
production because it reduces the earnings of businessmen, thus government extends
tax exemptions to some new and necessary industries to stimulate their growth.
Similarly, tax incentives are granted to foreign investors in order to increase foreign
investment in the Philippines, thus resulting more goods.
Subsidies offered by the government reduces the cost of production, which
induces businessmen to produce more.
The Law of Supply

The law of supply states that when the price goes up the supply goes up when the
price goes down the supply goes down in which quantity offered for sale will vary directly
with price.
When price Supply When price Supply

goes up… goes up… goes down… goes down…
Figure 2. Law of Supply.
Why is the Supply Curve Upward Sloping?
The Supply Curve
Graph 5. Law of Supply (Kenton, 2021)
The supply curve is a graph that depicts a direct or positive relationship between the
price of a commodity and the amount of output that a seller is willing to supply at a given
point in time, all other factors being equal. The supply curve depicts a positive or direct link
between the commodity's price and the quantity available in the market.
Quantity Supplied
It denotes the number of units of a product that a company is willing and able to sell
at a specific price during a specific time period.
A supply schedule is a table that shows how much of a product will be supplied at
various prices by different firms.
Example:
JOY’S SUPPLY SCHEDULE FOR BEANS
Price Quantity Supplied
(per kilo, ₱) (Kilos per month)
30 0
26.25 150
33.75 300
45 450
60 675
75 690
Table 2. Joy’s Supply Schedule.
Graph 6. Joy’s Supply Curve.
As the price of beans per kilo rises, so does the supply, and as the price of beans per
kilo falls, so does the supply.
Changes in the Supply Curve
A. Supply shifts to the right

Increased supply causes the supply curve to shift to the right, lowering prices and
increasing output.
Graph 7. Supply Shifts to the Right (Economics Online, 2020).
B. Supply shifts to the left

When supply decreases, the supply curve moves to the left, raising price but lowering
output.
Graph 8. Supply Shifts to the Left (Economics Online, 2020).
Market Equilibrium
Economists use the term equilibrium to describe the balance between supply and
demand in the marketplace. Under ideal market conditions, price tends to settle within a
stable range when output satisfies customer demand for that good or service.
The term “market equilibrium” refers to a state of equilibrium in which the amount
demanded equals the quantity supplied. The general agreement of the buyer and seller in the
exchange of goods and services at a specific quantity is known as market equilibrium. At the
point of equilibrium, there are always two sides to the narrative, the buyer's and the seller’s.
On the other hand, when buyers and sellers transact in a market they agree on the price of the
commodity and the amount to be sold and bought, this agreed price is called equilibrium
price.
For instance, given the price of ₱ 30.00 the buyer is willing to purchase 150 units. On
the other hand, the seller is willing to sell the quantity of 150 units at a price of ₱ 30.00. This
simple illustration simply shows that the buyer and seller agree at a particular price and
quantity that is ₱ 30.00 and 150 units. This is the main concept of equilibrium, that there is a
balance between price and quantity of goods bought by consumers and sold by sellers in the
market.
Demand and Supply Schedule Indicating the Equilibrium Price
and Equilibrium Quantity
Price Quantity Quantity
(₱) Demanded Supplied
10 250 50
20 200 100
30 150 150
40 100 200
50 50 250
Table 3. Demand and Supply Schedule.
Surplus
Shortage
Graph 9. Market Equilibrium.
The intersection of the market supply and demand curves is where a market’s
equilibrium price and quantity are found. The equilibrium price in the example above is
₱30.00, with a quantity demanded and supplied of 150 units.
What happens when there is market disequilibrium?
When there is market disequilibrium, two conditions may happen: there a surplus or a
either a shortage as shown in Graph 9.
Surplus is a market condition in which the quantity supplied exceeds the amount
required; when there is surplus, sellers are more likely to cut market prices in order to quickly
dispose of products and services.
Shortage is a market condition in which the quantity requested exceeds the quantity
available at a given price. A shortage occurs when the quantity required is greater than the
quantity available.
Market Equilibrium: A Mathematical Approach
In prior discussions, we used a graphical presentation to present market equilibrium.

In this section, we will attempt to use a mathematical equation to determine the market’s
price and quantity equilibrium.
How to find the equilibrium price and quantity?
Formula:
Demand Equation: Qd= a + bP
Supply Equation: Qs = a + bP
Equilibrium Condition : Qs = Q d
Where: Qd = Quantity Demanded

Qs = Quantity Supplied
P = Price
Using the previous example let us find the price and quantity equilibrium in the
market.
From Table 3: Demand and Supply Schedule
Steps Demand Supply
Find the equation of a line (250,10) and (200,20) (50,10) and (100,20)
through points.
1. Calculate the slope (m) from 𝑌2 − 𝑌1 𝑌2 − 𝑌1
𝑆𝑙𝑜𝑝𝑒 = 𝑆𝑙𝑜𝑝𝑒 =
2 points 𝑋2 − 𝑋1 𝑋2 − 𝑋1
20 − 10 20 − 10
𝑆𝑙𝑜𝑝𝑒 = 𝑆𝑙𝑜𝑝𝑒 =
200 − 250 100 − 50
1 1
𝑆𝑙𝑜𝑝𝑒 = − 𝑆𝑙𝑜𝑝𝑒 =
5 5
2. Substitute the slope for “m” Y = mx + b Y = mx + b
in the slope-intercept form of Y = - 1/5 x + b Y = 1/5x + b
the equation
3. Substitute either of the points Y = - 1/5 x + b Y = 1/5x + b
into the equation in solving b 10 = - 1/5 x + b 10 = 1/5(50) + b
10 + 1/5 (250) = b 10 – 1/5(50) = b
10 + 50 = b 10 – 10 = b
or or
b = 60 b=0
4. Substitute b, into the Y = -1/5 x + 60 Y = 1/5 x
equation from step 2
5. Change the equation into P = -1/5Qd + 60 P = 1/5 Qs
market equilibrium format 1/5Qd = 60 – P 1/5Qs = P
where Y is the price and x as Qd = 5(60) – 5P Qs = 5P
quantity. Qd = 300 – 5P
6. Equate Qd and Qs to get the 300 – 5P = 5P

the value of p 300 = 5P + 5P
300 = 10 P
P = 30
7. Solve Qd and Qs Qd = 300 – 5(30) Qs = 5P
Qd = 300 – 5(30) Qs = 5(30)
Qd = 150 Qs = 150
’s More
Task 2: Show Me the Plot.

Directions: Plot the following demand schedule of pork and supply schedule of Bangus in the market
in your notebook and analyze each graph.
A.
Price of Pork Quantity Demanded
(Per Kilo) (In Kilos)
230.00 5
210.00 10
200.00 15
190.00 20
180.00 25
B.
Price of Bangus Quantity Supplied (In
(Per Kilo) kilos)
180.00 7
170.00 6.5
160.00 6
150.00 5
140.00 4
I Have Learned
Now that we are finished in our lesson, let us review the topics we have learned.
1. __________ is an economic principle referring to a consumer's desire to purchase goods

and services and willingness to pay a price for a specific good or service.
2. There are five ___________________ these are: Price of the product, Changes in
Income, Changes in the Number of Buyers, Tastes and Preferences and Price of Related
Goods.
3. The ___________________ states that, when the price of a commodity goes up the
demand goes down and when the price of a commodity goes down the demand goes up.
4. _______________ is the amount of a product that is offered for sale at all possible prices
in the market.
5. There are four ___________________ these are: Technology, Cost of Production,
Number of Sellers and Taxes and Subsidies.
6. The __________________ states that when the price goes up the supply goes up when the
price goes down the supply goes down.
7. __________________ generally pertains to a balance that exists when quantity
demanded equals quantity supplied.
I Can Do
Task 3
Direction: Determine the price and quantity equilibrium in the market of the given equation:
Qd = 68 – 6P
Qs = 33 + 10P
I. Directions: Identify what is asked in each item. Write the letter of the correct answer in
your notebook.
1. It is an economic principle referring to a consumer's desire to purchase goods and services
and willingness to pay a price for a specific good or service.
A. Demand B. Supply
C. Income D. Expenditure
2. It is the amount of a product that is offered for sale at all possible prices in the market.
A. Demand B. Supply
C. Income D. Expenditure
3. What curve does a demand illustrates?
A. Downward sloping B. Upward sloping
C. straight line D. None of these
4. What curve does a supply illustrates?
A. Downward sloping B. Upward sloping
C. straight line D. All of these
5. What is it when buyers and sellers transact in a market when they agreed on the price of
the commodity and the amount to be sold and bought.
6. It is when there are disagreements among buyers and sellers on the price and quantity.
7. The law of demand states that the quantity of a good demanded varies
____________________.
A. inversely with its price. B. directly with population.
C. directly with income. D. inversely with the price of substitute
goods.
8. The following are factors of demand EXCEPT for_______________________.
A. Changes in income B. Technology
C. Price of the product D. Changes in number of buyers
Statement I: More sellers in a market – decrease supply.
Statement II: Fewer sellers in a market – increase supply
A. Both Statements are true B. Only statement 1 is true
C. Only Statement II is true D. Both statements are false
10. A decrease in supply shifts the supply curve to the left, which raises price but reduces
output.
A. shifts the demand curve to the left
B. shifts the demand curve to the right
C. shifts the supply curve to the left
D. shifts the supply curve to the right
II. Problem:
The schedule below shows the demand and supply data of a commodity.
Do the following:
A. Graph and analyze the demand, supply schedule (Price in the y- axis and quantity
demanded and quantity supplied in the x-axis)
B. Find the equations of the supply and demand curves.
C. Find the market equilibrium using the equations. (P and Qs,Qd)
Demand and Supply Schedule (per month)
Price Quantity Quantity
(₱) Demanded Supplied
3 7,000 1,000
6 5,000 2,000
9 3,000 3,000
12 2,000 4,000
15 1,000 5,000
Complete the following statements. Write your statements in your activity notebook.
1. As an ABM student, I have learned…_______________________.
2. As an ABM student, it is very important for us to learn…_______________________.
3. Using the knowledge I have learned in this lesson, I will be able to...
_______________________.
NegOr_Q3_AppliedEconomics11_Module3_v2 21
What I Can Do
Task 3
II. Problem
Price = 2.19 A.
Qs = Qd = 54.8 1.
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.
Assessment
I. Multiple Choice 2.
1. A 6. D
2. B 7. A
3. A 8. B
4. B 9. D
5. C 10. C
What’s More
Task 2
a.
B. Qd = 9000 – 2000/3P
Qs = 1000/3P
C. P = 9; Qd = Qs = 3,000
What I Know
1. A
Analysis: When the price decreases the demand of pork 2. A
increases or price is inversely proportional to quantity
3. D
demanded.
4. A
b. 5. C
What’s New
Task 1
1. Answers may vary…
Analysis: When the price goes up the supply of bangus
goes up or price is directly proportional to quantity
supplied.
Glossary
Demand curve - a graphic representation of the relationship between price and quantity
demanded of a certain good or service, with quantity on the horizontal axis and the price on
the vertical axis.
Demand schedule - a table that shows a range of prices for a certain good or service and the
quantity demanded at each price
Demand - the relationship between price and the quantity demanded of a certain good or
service
Equilibrium price - the price where quantity demanded is equal to quantity supplied
Equilibrium quantity - the quantity at which quantity demanded and quantity supplied are
equal for a certain price level
Equilibrium - the situation where quantity demanded is equal to the quantity supplied; the
combination of price and quantity where there is no economic pressure from surpluses or
shortages that would cause price or quantity to change
Excess demand - at the existing price, the quantity demanded exceeds the quantity supplied;
also called a shortage
Excess supply - at the existing price, quantity supplied exceeds the quantity demanded; also
called a surplus
Law of demand - the common relationship that a higher price leads to a lower quantity
demanded of a certain good or service and a lower price leads to a higher quantity demanded,
while all other variables are held constant
Law of supply - the common relationship that a higher price leads to a greater quantity
supplied and a lower price leads to a lower quantity supplied, while all other variables are
held constant
Price - what a buyer pays for a unit of the specific good or service
Quantity demanded - the total number of units of a good or service consumers are willing to
purchase at a given price
Quantity supplied - the total number of units of a good or service producers are willing to
sell at a given price
Shortage - at the existing price, the quantity demanded exceeds the quantity supplied; also
called excess demand
Supply curve - a line that shows the relationship between price and quantity supplied on a
graph, with quantity supplied on the horizontal axis and price on the vertical axis
Supply schedule - a table that shows a range of prices for a good or service and the quantity
supplied at each price
Supply - the relationship between price and the quantity supplied of a certain good or service
Surplus - at the existing price, quantity supplied exceeds the quantity demanded; also called
excess supply
References
Book:
Tereso, Tullao S. Applied Economics for Progressive Philippines
(Quezon City, The Phoenix Publishing House Inc., 2016), 48-49.
Online Sources:
Gabas, Maria Cecilia N. Quarter 1 - Module 1: Economics and the Real World. 2020.
Published by the Department of Education – Region X – Northern Mindanao
The Investopedia Team. Demand. 2021. Accessed on December 14, 2021.

https://www.investopedia.com/terms/d/demand.asp
EconPort. Factors Affecting Demand. n.d. Accessed on December 14, 2021.

https://www.econport.org/content/handbook/Demand/Factors.html
NetMBA. The Demand Curve. n.d. Accessed on December 14, 2021.
http://www.netmba.com/econ/micro/demand/curve/
Economics Online. Market Equilibrium. 2020. Accessed on December 14, 2021.

https://www.economicsonline.co.uk/Competitive_markets/Market_equilibrium.html
Anonymous. Demand and Supply: How Prices are determined in a Market Economy.
Accessed: December 14, 2021.
http://www2.harpercollege.edu/mhealy/eco212i/lectures/s&d/s&d.htm
Anonymous. Demand, Supply and Market Equilibrium in Markets for Goods and Services.
Accessed: January 31, 2021.
https://opentextbc.ca/principlesofeconomics2eopenstax/chapter/demand-supply-and-
equilibrium-in-markets-for-goods-and-services/
Nandy, Lina. Supply and Demand. 2009. Accessed: December 14, 2021.
https://www.slideshare.net/lntrullin/supply-and-demand-1184484
Graphs and Photos
Gumban, Edd. Dar: Rice Tariffication, Best Agriculture Reform Ever. 2021. Accessed on
December 14, 2021. https://www.philstar.com/headlines/2020/03/06/1998562/dar-rice-
tariffication-best-agriculture-reform-ever
Kenton, Will. Supply Curve. 2021. Photo taken by Bang, J. 2019. Accessed on December 14,
2021. https://www.investopedia.com/terms/s/supply-curve.asp

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Applied Economics-Q3-Module-3

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11 SENIOR HIGH SCHOOL

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand

Published by the Department of Education

Development Team of the Module

Printed in the Philippines by ________________________

Department of Education –Region VII Schools Division of Negros Oriental

Office Address: Kagawasan, Ave., Daro, Dumaguete City, Negros Oriental

This Self-Learning Module (SLM) is prepared so that you,

Task 1: Picture Analysis

Direction: Analyze the picture in answering the questions below.

Photo taken by (Gumban, 2021)

1. How do you determine the prices of goods and services?

Market Demand, Market Supply and Market Equilibrium

Factors of Affecting Demand

These factors include:

5. Price of Related Goods

The Law of Demand

When price Demand When price Demand

Figure 1. Law of Demand

Why is the Demand Curve Downward Sloping?

The Demand Curve

A demand curve is a schedule of the willingness and capacity of a consumer to buy a

Graph 1. Demand Curve, (NetMBA, n.d.)

Changes in Demand Curve

A. Demand shifts to the right

Graph 3. Demand Shifts to the Right (Economics Online, 2020).

Graph 4. Demand Shifts to the Left (Economics Online, 2020)

Factors of Affecting Supply

4. Taxes and subsidies

The Law of Supply

When price Supply When price Supply

The Supply Curve

Graph 5. Law of Supply (Kenton, 2021)

Changes in the Supply Curve

A. Supply shifts to the right

Graph 7. Supply Shifts to the Right (Economics Online, 2020).

B. Supply shifts to the left

Graph 9. Market Equilibrium.

What happens when there is market disequilibrium?

In prior discussions, we used a graphical presentation to present market equilibrium.

How to find the equilibrium price and quantity?

Where: Qd = Quantity Demanded

6. Equate Qd and Qs to get the 300 – 5P = 5P

Task 2: Show Me the Plot.

1. __________ is an economic principle referring to a consumer's desire to purchase goods

1. As an ABM student, I have learned…_______________________.

2. As an ABM student, it is very important for us to learn…_______________________.

The Investopedia Team. Demand. 2021. Accessed on December 14, 2021.

EconPort. Factors Affecting Demand. n.d. Accessed on December 14, 2021.

Economics Online. Market Equilibrium. 2020. Accessed on December 14, 2021.

Graphs and Photos

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