Activity 1

Directions: Identify 5 determinants of supply as well as for demand and explain why those determinants can affect the demand or supply. Defend your answer

Determinants of Supply

1.

2.

3.

4.

5.

Determinants of Demand

1.

2.

3.

4.

5.

Activity 2

It's Your Turn!

1. Using a Venn diagram compare the law of demand and the law of supply. Give at least 5 differences and 5 similarities of the 2 laws.

Activity 3

Directions: Differentiate the following.

1. Elastic and inelastic.

2. Normal goods and inferior goods.

3. Complementary and substitute

4. Income elasticity and Cross-price elasticity.

5. Elasticity and its importance for business sector

Activity 4

Directions: Solve for elasticity using the formula for price elasticity of supply and identify if it is elastic or inelastic supplied.

Suppose quantity supplied increases by 12% when price rises by 2%. What is the price elasticity of supply? SHOW YOUR SOLUTION