Supply-Demand and

Philippine Economic
Problems
What is Demand?

•Refers to the quantity of

goods and services that
consumer are willing and
able to buy.
What are the factors affecting demand?

• Change in consumer taste and preferences

• Change in number of buyers
• Change in consumer income
• Change in price of related goods
• Change in price expectations
What is supply?
•Refers to the ability and
willingness of the seller to
produce goods and services
What are the factors affecting supply?
• Change in technology
• Change in cost of production
• Change in taxes and subsidies
• Change in prices of other goods
• Change in price expectations
• Change in number of suppliers.
Market equilibrium

•is defined as the

price and quantity
point at which
market supply and
market demand for
an item are equal.
FORMATIVE
1. Factors affecting foreign currencies 3 points
2. Factors affecting boom of real estate in the Philippines 2 points
3. Taxes are burden to taxpayers which is considered as an advantage.f
4. Minimum wage is design to avoid exploitation.t
5. Rent is a factor payment of land.t
6. Rent applied to lump sum payment of land.f
7. Wages are factor payment of labor.t
Philippine Economic Problems
1. The Philippine Peso and Foreign currencies
2. Housing shortage and the real estate boom in the Philippines
3. Rent and Price structure
4. Savings and Investment
5. Rent
6. Minimum wage
7. taxes
 The Philippine Peso and Foreign Currencies
Currencies of other Countries
country Unit Symbol
influenced by :
United states Dollar USD
a. Import Japan Yen JPY
b. Export United Kingdom Pound GBP

c. travel Hongkong Dollar HKD

Switzerland Franc CHF
Canada Dollar CAD
Singapore Dollar SGD
Peso-Dollar/Euro Exchange Rate April 17, 2015

Country Currency Symbol Euro US Dollar Phil. Peso

Australia Dollar AUD .724236 .779423 34.615700
Bahrain Dinar BHD 2.465363 2.653224 117.835000
Kuwait Dinar KWD
Saudi Arabia Rial SAR .247779 .266660 11.842900
Brunei Dollar BND .685804 .738062 32.778800
Indonesia Rupiah IDR .000072 .000078 .003500
Thailand Baht THB .028679 .030864 1.370700
United Arab Emirates Dirham AED .252980 .272257 12.091500
China Yuan CNY .149950 .161376 7.167000
Korea Won KRW .000855 .000920 .040900
European Monetary Euro EUR 1.0000 1.076200 47.796200
Union
Housing shortage and the Real Estate Boom
in the Philippines
Total Number of Occupied Housing Units in the
 influenced by: Philippines by Census 1960-2010
Decennial Census Total Population (in thousand)
a. BPO
b. OFWs
1960 4,435.2
1970 5,668.8
1980 7919.9
1990 11,161.7
2000 14,891.1
2010 19,715.7
Rent and Price Structures
 rent is payment for the use of land or buildings belonging to others.
Refers to payment made to or for a factor of production over and
above the amount expected by the owner.
Exist due to market imperfections
According to Henry George (2014) “ in the economic meaning of rent,
payments for the use of any of the products of human exertion are
excluded, and of the lumped payments for the use of houses, farms
etc., only that part is rent which constitutes the consideration for the
use of properly interest, as it is a consideration for the use of capital.
Rent
Family Expenditure Distribution (2009) All Family
influenced by: Income Group
a. Lack of job
b. Lack of skills O FH
t oo
c. Meager income h ou
e ds
d. poverty r i
s 4n
g
1
4%
1 1
% 8
%
Savings and Investment
Investment is defined as building up the capital stock for more future
production and consumption.
Savings defined as the postponed consumption at present.
The use of money as exchange and credit medium can maximize
savings and investment.
What links savers from investors?
Financial intermediaries
Minimum Wage
 intertwined with the problem of unemployment.
Due to lack of jobs for large labor force
Cause of exploitation of employers
Taxes

advantages Disadvantages
1. Provide public goods and 1. Burden
services 2. Can dampen the incentive to
2. Empower and enable do business for the benefit of
individuals and institutions to the society
pursue their dreams 3. Distort savings, investment,
and consumption