Cadiao, Alyssa Rose L.

12 ABM 03

Activity 2.1.1
State what would be the effects of the following on the supply and demand of company.
Write only the letter of the correct answer on the space/s provided.

a. Increase in Demand f. Decrease in Supply

b. Decrease in Demand g. Increase in Quantity Supplied

c. Increase in Quality Demanded h. Decrease in Quantity Supplied

d. Decrease in Quantity Demanded i. All of the above
e. Increase in Supply j. No Effect

A 2. Consumers prefer Jollibee

D 6. Price of products of Company A increased
A 8. Company B announced additional value meal
H 10. Government imposed 5% additional tax on the industry that
company A belongs.
G 12. Subsidy amounting to ₱25,000.00 was given to company A
A 14. Company B hires a known celebrity to advertise their product
A 16. Disposable income of employees rise
G 18. Interest rate decreases
E 20. Price of equipment decreases

Activity 2.1.2
True or False.
Read carefully the given statements and indicate if they are True or False.

True 2. Basic wants are goods vital to our needs for sustenance and existence.

consumers.
True 4. Price is the rate of charge at which something is acquired.

False 6. Surplus means demand is greater than supply.

False 8. Suppliers are considered the king of all capitalist

True 10. If the supply is perfectly elastic; it means that any change in price will result in

an infinite amount of change in quantity.

True 12. Monetary value is the difference between the price of a commodity and the cost

of producing it.

False 14. Supply refers to the set of quantities buyers are willing and able to buy at various

prices at a given time and place

True 16. Labor is demanded by firms in a factor market

False 18. A supply curve shows the minimum price producers are willing to charge

True 20. According to the law of demand, there is a inverse relation between price and
the quantity demanded.