Applied Economics W3

Learning Area APPLIED ECONOMICS Grade Level 12
W3 Quarter Third (3 ) Quarter

rd Date
I. LESSON TITLE Market Demand, Market Supply, and Market

Equilibrium
II. MOST ESSENTIAL LEARNING COMPETENCIES (MELCs) The learners analyze market demand, market
supply, and market equilibrium
ABM_AE12-Ie-h-4
III. CONTENT/CORE CONTENT Market Demand, Market Supply and Market
Equilibrium
Suggested
IV. LEARNING PHASES Timeframe
Learning Activities
A. Introduction 15 DAY 1
Panimula minutes Good day welcome to another week
In this lesson you will be able to:
1. determine the concepts of market demand, supply, and
equilibrium,
2. state the laws of demand and supply,
3. construct and analyze demand, supply and their curves,
4. solve problems on demand, supply and equilibrium.
Everyday we have needs. From the time we are born we have
basic needs such as food, shelter and clothing. In Economics those
needs are called demand.
B. Development 40 Pre-test Let’s check your prior knowledge about the topic.
Pagpapaunlad minutes Directions: Rearrange the following jumbled letters to form
economic terms or words. Write the answer in your notebook.
1. D E S N E
2. S D O G O
3. T W A N S
4. M A N D E D
5. C E R I P
6. U C T R O P D
7. C E S V I S E R
8. V E R C U
9. T E K R A M
10. W A L F O M A N D E D
When you hear the word demand what comes first into your mind?
Definition of Demand:
Demand refers to a consumer's desire to buy goods and services
and willingness to pay a price for a specific good or service.
Example:
During this time of Pandemic Covid 19 the needs or demand of
people are as follows: face mask, face shield, alcohol and other
personal protective equipment’s.
Law of Demand
The law of demand pertains to the quantity purchased varies
inversely with price. In other words, the higher the price, the lower
the quantity demanded. This will be explained in Table 1 using the
demand curve,
Price Table 1
1
15
10
0
5 10 15 Quantity Demanded
Based on the demand curve, it shows that if the price is high the
demand for the product is low, if the price is low the demand for
the product is high.
Activity 1: Create your own Demand Curve using the given data:
write the answer in your notebook.
Product: Price 10 8 6 4 2
Pandesal Quantity 2 4 6 8 10
demanded
Day 2
Previously, you have learned about demand. This time you will
study about supply.
Definition of Supply
Supply pertains to the ability of producers to create goods and

services to take them to market. Supply is positively related to price
given that at higher prices it motivates to supply more as higher
prices may generate increased revenue and profits.
Example: A businessman is willing to produce more volume of his

product in the market if the price is high in order for him to gain
more profits.
Law of Supply
The law of supply says that as the price of an item goes up,
suppliers will attempt to maximize their profits by increasing the
quantity offered for sale. This will be explained in Table 1 using the
Supply curve.
Price Table 1
15
10
0
5 10 15 Quantity Supplied
Based on the supply curve, it shows that it has an upward slope. It

shows that price and quantity supplied are proportional to each
other.
2
Activity 2: Create your own Supply Curve using the given items:
write the answer on your notebook.
Product: Price (per sack) 20 40 60 80 100
Corn Quantity 30 50 70 90 110

Supplied
C. Engagement 30 Day 3
Pakikipagpalihan minutes
After we learned about Demand and Supply, this time we will learn
a new concept which is the Market Equilibrium
Market Equilibrium is the market situation where the supply in the

market is equal to the demand in the market. The equilibrium price
is the price of a good or service when the supply of it is equal to
the demand for it in the market. If a market is at equilibrium, the
price will not change unless an external factor changes the supply
or demand, which results in a disruption of the equilibrium.
Economic Equilibrium
Economic equilibrium is a scenario in which the market forces are

balanced, where current prices stabilize between even supply and
demand. The price that the buyer and seller agreed. The price
that buyer and seller meet is known as the equilibrium point.
Equilibrium price/ equilibrium point is shown in Table 1
Activity 3: Create a graph that shows the equilibrium price or

equilibrium point using the data below: Write the answer on your
notebook.
Product – Rice (in kilos)
Price 10 15 20 25 30
Quantity 50 40 30 20 10
Demanded
Quantity 10 20 30 40 50
Supplied
D. Assimilation 20 Activity 4: This time you are going to express what you have learned.
Paglalapat minutes Identify the terms/words in the following statements. Write your
answer in your notebook.
1. The desire for a particular gods or services
2. The quantity of a commodity that is in the market and
available for purchase at a given price.
3
3. The place where buyers and sellers interact
4. The law that states: “the quantity of a commodity which
buyers will buy at a given time and varies inversely with
price.”
5. The law that states: “the quantity offered for sale will vary
directly with price.”
6. A scenario in which the market forces are balanced, where
current prices stabilize between even supply and demand.
The price that the buyer and seller agreed.
V. ASSESSMENT 20 Activity 5: Answer the given question in your notebook.
(Learning Activity Sheets for minutes During this time of Pandemic Covid 19. Prices of commodities have
Enrichment, Remediation or
Assessment to be given on
gone high due to difficulty of transporting goods. As a consumer,
Weeks 3 and 6) how can you sustain your needs or demand despite the problems
in the increase of prices in the market? Explain your answer.
VI. REFLECTION 15 In your notebook write your personal insights about our lesson.
minutes
I learned that demand is _______________________________________.
Price affects ___________________________________________________.
As a buyer in a market, I must __________________________________.
Prepared by: Renato L. Berosil Jr., SDO Checked by: Josephine P. Canlas, Adora G. Del Mundo,
Imus City Alfredo G. Buhain, Jr.

Applied Economics W3

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Learning Area APPLIED ECONOMICS Grade Level 12

W3 Quarter Third (3 ) Quarter

I. LESSON TITLE Market Demand, Market Supply, and Market

Supply pertains to the ability of producers to create goods and

Example: A businessman is willing to produce more volume of his

Based on the supply curve, it shows that it has an upward slope. It

Product: Price (per sack) 20 40 60 80 100

Corn Quantity 30 50 70 90 110

Market Equilibrium is the market situation where the supply in the

Economic equilibrium is a scenario in which the market forces are

Equilibrium price/ equilibrium point is shown in Table 1

Activity 3: Create a graph that shows the equilibrium price or

Price affects ___________________________________________________.

As a buyer in a market, I must __________________________________.

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