APPLIED

ECONOMICS
(PC)
 Government
heightened alert
over ASF threat
Summary The Department of Agriculture Secretary
William Dar confirmed that several pigs
have died in different areas but he refuse
reports that the ASF virus has crossed the
Philippines. The news come as
international news outlets have reported
that some areas in Luzon have cases of
African swine fever (ASF). A disease which
only affect hog not human. He also stated
that they are conducting further
confirmatory laboratory tests including
blood samples to foreign laboratories to
ascertain the cause of the animals death.
Summary
The DA has yet to quantify the value of
the affected pigs, but he assured that the
incident will not affect current supply of
pork in the market. He also stated that
they are also requesting the stakeholders
not to take advantage of the situation by
raising prices.

The DA strengthened its crisis

management team to oversee the
planning and implementation of
appropriate measures to manage, contain
and control the suspected animal disease.
Context The news is about the African Swine
Fever that is suspected to have
entered the Philippines.
Stakeholders 1. Consumers
They might feel dilemma to buy pork
products due to affected hogs because of
the outbreak of ASF or mostly known as
African Swine Fever. The price of pork may
increase and the quantity demand may
decrease.
2. Business Owners
Restaurants and other fast foods offering
pork menus as their specialty like Lechon
will also be affected due to scare of
consumers to the disease. Inflation rate
might occur on other meat products and it
may affect the price of the menu being
offered.
3. Other breed of pigs
- The affected pigs might transfer the virus to another breed of pigs so it is imperative
to contain the affected pigs in the area in order to control the outbreak of the disease
to various piggery farms. Wild hogs might also be affected by the disease and their
numbers will lessen.
4. Importers
- Due to the outbreak of the disease on hogs, importers will encounter problems on
their finances because of the ban on importation. Some may loss millions of pesos and
will face financial problems regarding loans in the bank.
5. Pig raisers
- Piggery farms might turn to bankruptcy because they are the most affected of the
outbreak of the disease on hogs.
Relation to Scarcity

the Lesson This news could be related to SCARCITY,

which is unlimited wants but limited
productive resources. Due to the increasing
mortality of the hogs, the resources will
decrease which will make the resources
limited.

Factors of Production
The FACTOR OF PRODUCTION from natural
resources will be minimized because of the
increasing number of hogs death.
Law of Demand
Since the government banned the importation of pork from over 19
countries, the price of the hogs will be affected, that would also affect
the quantity of demand from consumers. If the price of pork will
increase, the quantity of demand will decrease.

Determinants of Demand
• Price of Related Goods
• Expectation of Future Prices
Insights
References Rivas, R. (2019, August 19). DA probes
suspected African swine fever cases in
PH.Rappler. Retrieved from
https://www.rappler.com/business/238046-
department-agriculture-probes-suspected-
african-swine-fever-cases-philippines

* Simeon, LM (2019,August 20). Government

on heightened alert over ASF threat. The
Philippine Star. Retrieved from
https://www.philstar.com/business/2019/08/20/
1944786/government-heightened-alert-over-
asf-threat