Do you think the demand for pinoy pandesal and pinoy tasty is elastic?

what do you think will happen

to the demand for pandesal and tasty when price increase by 15% and by 100%?

The 15% rise in Pinoy Pandesal's and Pinoy Tasty's prices would be considered inelastic as it's a regular
part of the Filipino breakfast. The customers wouldn't feel such a tiny increase, they could purchase less
but the demand would still be there.

The graph shows that when an increase of 15% in price, the quantity demanded will decrease but not
that much because people will still buy it.

If a store or a bakery increases the price of both types of bread by 100%, the demand may become
Elastic. With such a big jump in its price, people may choose to have rice, taho, champorado and others
for breakfast as a substitute to save money.

As you can see on the graph, an Elastic demand is more sensitive to price, so changes in price results in
larger changes in quantities because people think there is more substitute with pandesal and tasty.

What do you think will happen to the supply of pandesal and tasty if the price of locally milled
flour increases by 15% and by 100%?

We can claim that there is relatively elastic demand for pinoy pandesal and pinoy tasty. We can
conclude that because elasticity measures the "reactiveness" of demand to price modifications in the
product.
We say relatively because if we increase the price by 15%, buyers could still take the price and buy as
many pandesal as they have been buying in the past however if we increase the price by 100% there
might already be some cuts in the demand for pandesal and tasty.

What are the substitutes for pandesal and tasty? Do you think prices of these substitutes will
likewise increase?

There are two kinds of substitutes for pandesal and tasty, the direct substitutes which could be the
other types of breads and the indirect substitutes which could be another option aside from breads such
as Fried rice and Pasta.

The prices of the substitutes said above will only rise if people decided to switch onto those products or
in other words, the demand for those substitute goods goes up.

Do you think the government should implement a price ceiling for Pandesal and Tasty?

Yes, because we can't measure the profit of the people selling or baking these breads. Also, people can
still afford it as it is become part of their daily breakfast.