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Economics notes
market- a place where buyer and seller exchange
demand and supply- source of price (dti)
price theory and demand of supply
demand- desire of willingness of an individual to pay
price-
income-
substitutes
compliments
Perfect Competition
-all firms sell an identical product
-relatively small market share
-also called as 'pure competition'
ex:
foreign exchange markets
agricultural market
online shopping
Monopoly
-one producer/seller for a product

Economics notes 1
 -entry into such a market is restricted to high costs or other impediments
-there is no pure competion
Duopoly
-two companies own orall nearly
ex:
apple and android
-visa and mastercard
oligopoly
-market industry is dominated by a small number of sellers (oligopolists)

Elasticity of demand and supply

law of demand- indicates only direction of change in quantity demanded in response to
change in price
Elasticity of demand- states with how much or to what extent the quantity demanded will
change in response to change in any determinants
concept:
if price rises by 10% demand will fall
-by more than 10%?
-by less than 10%?
-Elasticity measures the extent to which demand will change
PED Formula (price elasticity of demand)
-Responsiveness of quantity demanded or how much quantity demanded changes
formula :
PED= %change in quantity demanded / %change in price

degree of price elasticity of demand

-perfectly elastic
-perfectly inelastic
-unitary elastic
-relatively elastic
-relatively inelastic

Perfectly elastic demand PED= infinity

-high end products

Economics notes 2
 -a small rise in price results in fall in demand to zero
-small fall in price causes increase in demand to infinity
Perfectly Inelastic Demand PED=0
-primary needs, utitlities, transportation, healthcare
-a change in price causes no change in quantity demanded
Unitary Elastic Demand PED= 1
-cellphones
-when the proportionate change in demand produces the same change in the price of
the product
Relatively Elastic Demand PED= >1
-refers to demand when the proportionate change produced in demand is greater than
the proportionate change in price of a product

Relatively Inelastic Demand PED= <1

when the percentage change produced in demand is less than the percentage
change in the price of a product

Labor supply
-employment rate of the philippines
2018-94.5%
2019-94.9%
2020-91.9%
2021-91.1%

Philippine population

savings and investment

investment-defined as building up capital stock for more future production and
consumption
-rent- economic rent is an unearned income
-minimum wage - minimum amount of remuneration that an employer is required to
pay wage earners for the work performed during a given period
-taxes -levied in almost every country of the world

Economics notes 3