Republic of the Philippines

DEPARTMENT OF EDUCATION
Region X – Northern Mindanao
DIVISION OF LANAO DEL NORTE
MUNAI DISTRICT
MUNAI NATIONAL HIGH SCHOOL
Senior High School

I. OJECTIVES

Content : Chapter 2 Law od Demand and Supply

Content Standard The learners demonstrate an understanding of the law of supply and Demand.
Performance Learning Standard: Conduct a survey of current economic situations with in the vicinity.
Learning Competencies: The Learners shall be able to to explain the law of Demand and demonstrate the
factors affecting Demand.
Objectives : At the end of the lesson, the student will be able to:
1. Define the meaning of Demand
2. Identify and explain the Determinants of Demand
3. Apply the factors affecting the determinants of Demand in their real life.

II. SUBJECT MATTER

TOPIC : 2 APPLICATION OF DEMAND AND SUPPLY

References Curriculum Guide, applied Economics in Philippines context
Materials:
DLP, LOPTOP, CARTOLINA PICTURES
III. Procedure
a. Preparation
Prayer
Attendance
Reminders / Setting of Classroom Rules
Review the previous Topic
Conduct a short review of the previous topic (Economic System) through the spin a wheel
activity .A wheel is created with a variety of review question on it. Then the students
randomly called upon to came up and spin the wheel to see if they can answer the question
correctly.
Motivation – Picture Analysis ( Presentation of Picture of the Product)
Ask the students to interpret the picture
Connect their responses to the topic on determinants of Demand.
b. Activity
1. Showing Products
The teacher will show the picture and the students randomly called upon to came up and pass the ball and
the will analyze the picture and they are going to answer the question.

1. Which One you are going to Buy?

2. What will happen if the prices of basic commodities will keep on increasing?
3. ABSTRACTION
WATCH MO TO!
 The students were to watch a video clip of determinants of Demand .

1. What is Demand ?
2. what are the factors affecting the demand?

The Meaning of Demand

Demand is the schedule of various quantities of commodities which buyers are willing to purchase at
various prices in a given time and place. Demand tells us what people want. It also tells us what they can
buy at a certain time and place. Because it involves buying, it also involves at what price people can buy it
or are willing to buy it.

Income
effect

Price of
Related Population
Goods
Determinants
of Demand

Price taste and

Expectation preferences

Determinants of Demand
1. Income. The amount of money people earns affects how much or how little they buy. This means the
factory worker has less money. He can buy less than the businessman. However, when the income of the
factory worker goes up, he can buy more.
This means that a change in income leads to a change in the demand for goods and services. More money
means more demand. Less money means less demand.
 Income

Normal Inferior Luxury

Goods Goods Goods
 Normal goods – these are the goods that are being purchased naturally such as food, cloth and etc.
 Inferior goods – these are the goods that are often used as replacement for normal goods since these
goods are cheaper. As the income of the consumer increases they can afford to buy normal goods.
 Luxury goods- These are the expensive materials that are sometimes purchase for the perceived of
the owner.
2. Population. More people means more demand for goods and services. That is why, we can observe that
there are more buyers in the city stores than in the barrio stores. Conversely, less population means less
demand for goods and services. Obviously, business is poor in the rural areas compared to business in the
urban areas.
3. Tastes and preferences. Demand for goods and services increases when people like or prefer them. Such
tastes or preferences are greatly influenced by advertisement or fashion. On the other hand, if a certain
product is out of fashion, the demand for it decreases.
4. Price Expectations. When people find out that prices are about to increase, they buy more of these goods
before the price changes. When people find out that prices are about to go down, they will not demand these
goods as much.

5. Price of related goods. When the price of a certain good increases, people tend to buy substitute products.

n Substitute Goods

n Complementary Goods
Substitute Goods- refers to any alternative, replacement or back up of the primary goods in the market.
Complementary Goods – refers to the goods whose price change directly impacts the demand of related
goods.
4. APPLICATIONS

ACTIVITY : BUY ME ACCORDING TO YOUR ABILITY!

 Instruction one of your classmates will act as the Saleslady and the rest of the class will act as
consumers or the buyers.
 A PRICE TAG will be passed on from one student to another student while PLAYING THE
MUSIC OF PRICE TAG “at the end of the song whoever is the last holding the Ball will READ
THE NAME of the student and the student will buy one product and explain what determinants of
demand he/she consider in buying such product.
5. GENERALIZATION

Part I. Read and answer the following questions. Encircle the letter of your answer.
1. Mr. Dennis Elecanal purchased a new car as a gift for his father’s birthday.
This good is __________.
A. Consumer goods C. Capital goods
B. Luxury goods D. Economic goods

2. An increase in consumer income will increase demand for a ________ but

decrease demand for a _________.
A. Substitute good, inferior good C. Inferior good, normal good
B. Normal good, inferior good D. Normal good, complementary Good

3. If a price of Coca Cola increases then quantity demanded of Minute Maid is

increases, then Minute Maid is a ______.
A. Substitute good C. Bargain
B. Complementary good D. Inferior good

4. When there is an increase of price for white sugar, customers switch to

brown sugar as an alternative. What type of good is the scenario classified:
A. Complement goods C. Substitute goods
B. Important goods D. Valuable goods
5. Refers to the goods that are being purchased naturally such as food, cloth
and etc
A. Consumer goods C. Capital goods
B. Luxury goods D. Normal goods

Prepared by :

NAHIDA M. TAKIRI