To summarize what you have learned from this unit you are tasked to answer what is stated

below

Performance task part 1: 30 points

Instruction:
 Read and analyze the different situations given. Then provide what is being asked.
 Questions requires you to analyze and think critically as an economist.

1. There has been a nationwide smoking ban in the Philippines since 2017. The regulations
prohibit smoking in all public places, and is considered to be one of the strictest anti-
smoking laws in South-east Asia.
Tobacco packs changed in previous years, and continually innovated with the addition of
unpleasant pictures of malignant cases resulting from smoking. The government, through
the Department of Health, also campaigns to increase taxation on tobacco products, and
promote awareness of the health issues people may face if they do not refrain from
smoking. 6 points
FACTORS AFFECTING THE QUANTITY INCREASE/DECREASE IN QUANTITY
DEMAND AND QUANTITY SUPPLY

DEMAND SUPPLY DEMAND SUPPLY

price Increase in the demand No effect

for normal goods-
(Iphone) omsikm

2. The COVID-19 pandemic and measures imposed to limit the spread of the disease have had a
significant impact on the Philippine economy. A high unemployment rate and generally weaker
economy have led to a fall in consumer spending during 2020. 2 points

3. Similar to vitamins, many products in the dietary supplements category saw a much-
improved performance in 2020 as a result of the COVID-19 pandemic. Products offering
greater immune function saw increased demand as consumers adopted preventative
strategies regarding their health, and efforts to resist the virus. 2 points

4. Because of adverse global conditions in the world market today, manufacturers of

computers here are experiencing some difficulties in acquiring microchips abroad due to
restrictions on trade and greater shipping cost. 6 points

5. Due to its health benefit, there is an Increase in the price of alkaline water in relation to
purified water. 6 points

6. The effect of the pandemic brought about by the NCov-19 was foreign currency starts to
depreciate. At the moment customers are waiting for the depreciation before exchanging
their money. 2 points

7. Many agricultural products are damaged due to typhoon Rolly and Typhoon Ulysses. This
means that there will be less sellers that will be willing to supply agricultural products
because they may find it difficult securing agricultural products. The seller will now incur
 higher costs because of struggle in securing agricultural products.6 points the depreciation
before exchanging their money. 6 points
Required:
1. Identify the factor that affects the quantity demand and quantity supply in the given
situation.
2. Analyze the effect of the identified factor to the demand or supply.
3. Present your answer in this format:
Example: Hoover D. See bought the latest Iphone from the moment he was promoted to
Vice President for Marketing.

FACTORS AFFECTING THE QUANTITY INCREASE/DECREASE IN QUANTITY

DEMAND AND QUANTITY SUPPLY

DEMAND SUPPLY DEMAND SUPPLY

Example: income- Increase in the demand No effect

for normal goods-
(Iphone)

Performance task part 2- 20 points

Required:
a. Analyze carefully each given situation.
b. Graphically illustrate to show the effect to the (demand curve, supply curve,
equilibrium) of product under consideration.
c. Label your graphical illustration properly.

1. What is the effect of each of the following on the demand for product? (8points)
a. Product A becomes trendier and more fashionable.
b. Income of the buyer declines due to the adverse effect of the pandemic and Product
A is an inferior good.
c. The price of substitute which is Product B falls what happens to the demand for
product A and product B.
d. Research suggests that Product A may lessen Covid-19 symptoms.2 points
2. What is the effect of each of the following have on the supply of Product A? (6 points)
a. An increase in the price of resources required in the production of product A.
b. The levying of a specific tax on product A.
c. A technological advance in the methods of producing product A.
3. What is the effect to equilibrium price and equilibrium quantity assuming the following
situation? Take note that changes in the demand curve and supply curve can also
influence the changes in equilibrium price and equilibrium quantity) 6 points
a. Study released on how apple helps to prevent cancer. (2points)
b. Apple pickers unionized and demand wage increase. (2points)
c. Pear cider industry launches ad campaign. Assuming a good campaign. (2points)