Bhea Nicole Paclibon

BSBA-1L

ACTIVITY
Concept of Demand

Problem Analysis. Analyze and answer what is required in the following problems.

1. Given the options below, choose the appropriate letter that corresponds to the effect on demand of Coffee
X, an instant coffee. (5pts)

A. Increase in Quantity Demanded

B. Decrease in Quantity Demanded
C. Increase in Demand
D. Decrease in Demand

A 1. The price of Coffee X increases by 5%. Aling Rosing buys less for her sari-sari store.
D 2. A decrease in the price of tea, a related good, causes Aling Rosing to reduce its purchases of Coffee X.
C 3. The price of a particular coffee creamer brand has price roll back promo of less 20% off.
D 4. The price of sugar increases.
B 5. The price of Coffee X goes down due to price off promo (Less P15).

2. Suppose the demand for onions per kilo in Pangasinan is represented in the table below, expressed as Qd =
a-bP.

Price (per kilo) Quantity Demanded

8 260

16 220

24 180

32 140

40 100

Using the information in the demand schedule above, derive the demand equation for onions. (5pts)

Answer:

Demand Function: Qd = a-bP

Quantity demanded if the price is zero.

Formula (Q1 – Q2) + Q1

A = (260 – 220) + 260
A = 40 + 260
A = 300
Slope

B = Q2-Q1/P2-P1
B = 220-260/16-8
B = -40/8
B =|-5| or 5

Demand Equation: Qd = 300 – 5(P)

Sample Solution:

Qd = 300 – 5(P)
Qd = 300 – 5(8)
Qd = 300 – 40
Qd = 260

Qd = 300 – 5(P)
Qd = 300 – 5(16)
Qd = 300 – 80
Qd = 220

3. Make a demand curve. (10pts)

Price (per kilo) Initial/Original Demanded Increase in Demanded

8 260 280

16 220 240

24 180 200

32 140 160

40 100 120

4. Make a demand curve. (10pts)

Price (per kilo) Initial/Original Demanded Decrease in Demanded

8 260 240
16 220 200

24 180 160

32 140 120

40 100 80