ECONOMICS AS

A FIELD OF STUDY
 Micro economics

By Engr. Ma. Nerissa P. Sangalang, RCE,LPT,MBA

 The Law of Demand

• It states that as price increases, quantity

demanded or the willingness to buy the
product decreases, holding all other factors
constant.

• It is the inverse relationship of price and

quantity demanded.

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 Slope of the Demand Curve

DEMAND CURVE

RISE ∆y ∆P P2-P1
SLOPE = = = =
RUN ∆x ∆Q Q2-Q1
Where:
P1 and Q1 stand for initial price and quantity of the product, respectively;
and

P2 and Q2 are the final price and quantity of the product, respectively;
∆ is a symbol for change

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 Demand Schedule and Demand Curve

Slope of the Demand for Bread

3-4 -1
slope = =
10-0 10

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Shifts in Demand and their Determinants

• Changes in the average income

• Changes in the size of population
• Changes in tastes and preferences
• Changes in consumers’ speculations

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Praise and glorify GOD
always!
END