Two important considerations arise in all

applications of supply and demand analysis.

 First, the shapes of the supply and demand curves must

be established within the context of the problem being
analyzed.

 Second, the forces leading to shifts in the supply and

demand curves must be determined in the case at hand.
 Figure 1 examines the effects on the price and
quantity of fresh milk and TV sets of an increase in
consumers' incomes.
 Figure 2 examines the effects of technological
improvements in the two industries.

In analyzing the effects of shifts in demand and supply it

is necessary to keep in mind the perspective from which
changes in price and quantity are to be viewed.
 Prices of Basic Commodities

Prices as of February 13, 2017

Type of Fish Lowest Price Highest Price

Php peso Php peso

Bangus (milkfish)
130 140
Tilapia
90 110
Galunggong (mackerel
120 140
scad)
 Types of Rice Lowest Price Highest Price
Php peso Php peso
Regular Milled Rice 33 40
Well Milled Rice 40 48

Premium Rice 42 55

Fancy Rice 50 65

Types of Vegetables Lowest Price Highest Prices

Php peso Php peso

Ampalaya (amorgoso / 80 100
bittern melon)
Sitao 60 75

Cabbage 50 65

Carrots 90 100
Sweet Potato (Kamote) 40 55

Tomato 60 80

Onions 60 80

Potatoes 50 80

Eggplant 50 70

Pechay (Chinese cabbage) 65 80

Ginger 55 70

Chayote (Sayote) 20 35

Garlic 100 150

Baguio Beans 50 65
Cauliflower 160 175
Sugar or Cooking Lowest Price Highest Price
Oil
Php peso Php peso
Refined Sugar 50 65
Washed Sugar 50 60
Brown Sugar 50 55
Cooking Oil (375 mL) 40 45
Cooking Oil (750 mL) 70 80

Types of Fruits Lowest Price Highest Price

Php peso Php peso
Banana (Lakatan) 45 60

Banana (Latundan) 40 50

Calamansi 70 80

Mango 60 90
Types of Meat or Lowest Price Highest Price
Poultry

Php peso Php peso

Beef Rump 265 300

Beef Brisket 235 270

Pork Ham / Kasim 180 200

Pork Liempo 200 210

Whole Chicken 125 150

Chicken egg (per piece / 4.50 6.20

size)
 HOW SUPPLY AND DEMAND DETERMINE
COMMODITIES MARKET PRICES
 Price is derived by the interaction of supply and
demand. The resultant market price is dependant upon
both of these fundamental components of a market.
 . When an exchange occurs, the agreed upon price is
called the "equilibrium price", or a "market
clearing price" . This can be graphically illustrated
as follows: ( Figure 3)
 When either demand or supply changes, the
equilibrium price will change.
 This can be illustrated graphically as follows: (see
Figure 4.)

 Likewise a shift in demand due to changing

consumer preferences will also influence the market
price.
 A decline in the preference for Hard Red Spring
wheat shifts the demand curve inward, to the left, as
illustrated in figure 5.
LABOR SUPPLY

 In mainstream economic theories, the labour

supply is the total hours ( adjusted for
intensity of effort) that workers wish to
work at a given real wage rate.
 Labour supply curves derive from the ‘labour-leisure’
trade-off. More hours worked earn higher incomes, but
necessitate a cut in the amount of leisure that workers
enjoy.
 Consequently, there are two effects on the amount of
labour desired to be supplied due to a change in the real
wage rate.
 For example, the real wage rate rises the opportunity cost
of leisure increase. This tends to make workers supply
more labour ( the” substitution effect”)
 However, also as the real wage rate rises, workers earn a
higher income for a given number of hours. If leisure is
a normal good—the demand for it increases as income
increases—this increase in income tends to make workers
supply less labour so they can "spend" the higher income
on leisure (the "income effect").
MARXIST VIEW

 From a Marxist perspective, a labour supply is a

core requirement in a capitalist society.
POPULATION GROWTH
 In biology, population growth is the increase in
the number of individuals in a population.
Population[2]
Years passed Year Billion
- 1800 1
127 1927 2
33 1960 3
14 1974 4
13 1987 5
12 1999 6
12 2011 7
14 2025* 8
18 2043* 9
40 2083* 10
* UNFPA
United Nations Population Fund
estimate 31.10.2011
POPULATION GROWTH RATE

 The "population growth rate" is the rate at which

the number of individuals in a population
increases in a given time period, expressed as a
fraction of the initial population.
 Specifically, population growth rate refers to the
change in population over a unit time period,
often expressed as a percentage of the number of
individuals in the population at the beginning of
that period.
 This can be written as the formula, valid for a
sufficiently small time interval:
 A positive growth rate indicates that the
population is increasing, while a negative growth
rate indicates that the population is decreasing.
A growth ratio of zero indicates that there were
the same number of individuals at the beginning
and end of the period—a growth rate may be zero
even when there are significant changes in
the birth rates, death rates, immigration rates,
and age distribution between the two times.
WAGE
 Wage means payment for units of time or units of product as
valued under a wage rate agreement.
 Today's most common unit is the hour.
 Wages means remuneration "Act or fact of remunerating"; "to
give, present" an "advantage", "gift" or "reward" ) for services (or
the quality thereof).
 These advantages may include such things as health and life
insurance, paid vacation time, gifts for years of service,
bonuses for high production rates and other employer provided
benefits.
 Since wage labour is the predominant form of work, the term
"wage" sometimes refers to all forms (or all monetary forms) of
employee compensation.
LABOUR MIGRATION

 International labour migration is defined as the

movement of people from one country to another for
the purpose of employment.
 As a result, a growing number of both sending and
receiving countries view international labour
migration as an integral part of their national
development and employment strategies.
OVERSEAS FILIPINO WORKER DEFINITION

 An Overseas Filipino Worker or OFW is a

Filipino living and working outside of the
Philippines who are in another country for a
limited or definite period i.e. on a work contract.
 Balikbayan (Filipinos returning home for
temporary visits).
THE PHILIPPINE PESO AND FOREIGN
CURRENCIES