Economics

Week 5; Elasticities of Demand and Supplies

In elasticity it determines of how the consumers will response to changes in the

market industries. It also determine the sensitivity and shows the changes of the

price and demand.The quantity demand of product will change very high if the price

will increase or decrease it is called elastic and the quantity demand of product will

change a little if the price will shift back and forth. Unitary elastic also if the price will

change the demand will also change equally.

Today since Covid19 is spreading the demand of alcohol is increasing so as the

price will also increase it is called inelastic it is because even tho the price increase it

is in demand because lots of people need it. The value price elasticity may be

measured in two ways:

1. Arc elasticity

Arc elasticity is a measure of the value that is computed by choosing two points on

the demand curve. There is a formula to get the arc elasticity.

EP = {Q2-Q1)/(Q2+Q1/2)} ÷ {(p2-p1p)/(p2+p1/2)}

2. Point elasticity

It measure the elasticity of demand of the particular point. Usually it is use

Week 6 Market structure

Market structure is to show the effect of behaviour and interaction of the buyers

and sellers. In the market industry lots of competition are everywhere to see like the

same product or type that are being bought or the number and sizes of buyers and

sellers. In a market structure there are things to consider like the number and size of

sellers and buyers it is because there is so many buyers and sellers that has

insignificant impact on market price. Next is the type of product if it is a same product

that is sold by sellers it is mean if the product is still the same, there is no preference

in buying to another. And the condition of entry and exit it is perfect if the resource is

mobality it is because it is easy to a resource to use and lastly the transparency of

information.

There are types of market structure the monopoly,monopolistic competition and

oligopoly.Pure (pefect) competiton there are things that the individual decision maker

will not effect the price of the product

Imperfect Competition there are types of imperfect competition and one of it is

monopoly,since monopoly is a different in a market industry like there is no indirect

competitors that could compete and also a monopoly could exist because it is unique

to other and could possibly if ever they would enter and compete that is already

there it could possibly face a copyright. If the price is lower the higher will the

consumer would be bought in monopoly,

Monopolistic Competition is also under the imperfectly competition wher the products

are differentiated and entry and exit are easy. Lots of consumer wants a product that

have lots of choices and they can differentiate like t.shirt they can choose what they

want by product,design or type of cloth.

Week 7 Supple-Demand and the Philippine Labor Market

Since the popular of labor is important but not all country’s population are part

of the labor supply. In wage negotiation if the person buy he is called a buyer he can

demand anything and the business supple them and if the person wants a job the

role will be reverse the person will be the seller and the business owner becomes the

buyer and that is the result of wage negotiation.

Derived demand when the business need an employee because of the

demand that is needed for example a mask is in demand so probably the owner

should hire more employee to do more mask and to accommodate all buyers but if

the other business also needed more employee the workers will increase and drive

up wages. doctors are mostly in demand because of their skills that can cure skills

but their supply is limited since it is a difficult job and I takes how many years to get it

but their are other jobs that is also important but have less salaries and since the

supply is high and the demand is low. Some jobs are not mostly because they are

being payed more it means ther are highly skilled but some other are because of the

age,race,ethnic origin and age and it is called wage discrimination

Week 8 Supply-Demand and the Philippine Labor Market

Employed people are those who has part time or full time job and unemployed are

those people who are searching for a job. Underemployed are those people who

have job but there skilled here high than there current job. Population growth are the

increase of people in the country usually when the population growth increase the

cause of it was poverty is what of the cause. Census are the count of population and

it is enumerated every 5 years. Labor force participation rate- LFPR usually are

those people who are eligible to participate in the labor force who are finding jobs.

There are types of unemployed one is frictional unemployed sometime those

people who are in between of finding a job or transferring to another job, second is

structural unemployed are those people who are involuntary unemployedcause of

the mismatch between the skills that can economy will offer and as a result of

changes in technology. Third is cyclical unemployed it is a cause of the upward and

downward to the business cycle. Fourth is seasonal unemployed it is a change of

work if the season will change also. Labor migration and overseas Filipino workers

they are the one who choose to work in a foreign country because of the lack of

salaries and also the job have high salaries. POEA (Philippine overseas employed

administration) they are the one who who implement the labor code for OFW’s. the

Philippine financial market are consist of two parts usually the money market and the

capital market. The investors are the one who represent the buyers and the

borrowers represent the seller in the financial market.

Week 9 Principles, Tools and Techniques

In a business sole proprietorship it is the simplest business because the person

who owns the business have its own responsibility for the debts. In a partnership it is

consist of two people that are handling the business there are two types of

partnership the general partnership and the limited partnership. General partnership

it is consist of two people who agree to share the assets that the business have and

in the limited partnership is also similar to general partnership but limited partnership

must at least have one gross profit and one limited partner. In a corporation they

have a big taxes to pay since corporation is an organization that a group of people

was authorized to act as a single entity.

Cooperative was organized by people with similar needs to provide themselves

with goods and service to use available resources to improve their income.

Small,medium and large scale business. Small-scale business have small business

that have 1 or 2 people that is involve towards the business and also have small

number of clients. Medium-scale business this scale have greater number of

business than the small-scale business and it operate daily and often have a

significant number of clients and business contacts. Lastly is large-scale business

have more employees,in more complex management that are rank than in the

medium scale businesses. This scale of the businesses show where the businesses

belong of how big there businesses have.

Week 11 Tools in Evaluating a Business

SWOT analysis is a big help to analyse the strength of the business the

meaning of swot is strength,weaknesses,opportunities and threats in the strenght

and weaknesses you can find the weaknesses that have in a business and the

strength that could be use for the business to grow this two is what you can see

inside the business. The opportunities and threats that can see outside the business

these two could also see in a business when having a business more opportunities

will come but there will always a threat. In assessing the the strength and

weaknesses is competitive advantage,role for benchmarking, key performance

indicators. The market share the proportion of the market the business has how

profitable

the business compared with the competition key will measure the operating the

profit margin. I na business threats maybe difficult to handle but other are use it as

an opportunity. In a business we should know how to take advantage of

opportunities to make the business grow also knowing to control the threats tha may

come and in a role of risk management & contingency planning. SWOT is usually

use it is because it focuses on strategic issues so sometimes SWOT must be very

difficult because it may become out of date.

Week 12 Industry and Environmental Analysis

In a business industry competition will always be there. Competition will see if you

put your business in a specific area and they have a close propose business . it is

very important to know who are the competitors for them to be ready in business.

Costumers are very important when you start in a business it is because we should

know the market if the are is best for the costumer to be notice, also we should know

what type of business we should create depend on the area and the people who will

be cater. Suppliers are also important when you have a business to know where to

get the source of raw materials,intermediate product and finish product.

A business owner can buy directly from the manufacturers. This will be the

cheapest source since there are no middlemen involved. However, this is only

recommended if the supplier's location is convenient and will not involve expensive

delivery costs.substitute These are goods that may, even if partly, satisfy the same

needs of a consumer such that the consumer may use one instead of another. For

example, margarine can be a substitute for butter or wheat bread for white bread. In

economic forces This involves a look at economic factors such as income of the

people, specifically the target market, economic conditions such as inflation,

recession, prosperity, demand, and supply in the market.

 Week 13 The Circular flow of economic

Raw materials are unprocessed goods like raw minerals, logs, and wheat, which

are extracted from their sources and do not undergo any process of production.

Intermediate goods are semi-processed goods that are not ready for final use by the

consumer, such as leather, cloth, and steel, which have undergone some processing

but need to go through additional processing before they can be actually used.

These are supplied to final good firms for conversion into goods in their finished

stage. Final goods are goods that are ready for direct consumption such as

refrigerators, dresses, or pants. These final goods are then sold to customers for

their use. Household are the sellers of the factors of production they sell the the

labor to the land of capital of ideas they are the factors of production that are being

sold out and also household are the buyers of product, it is doing two things tghe one

that buy the product that are finished and also create it and going out of houshold is

one way factor of production coming in the household are goods and services, the

one that are final and that they are buying.. factor market is where household are

those who are selling there factors of production.

 Week 14 The Economy Producing Sector

In economy there are3 types of main producing sector firsts is agriculture, fishery

and forestry this things show the sector of fruits of natural resources. But things can

not avoid since it is natural there will always a climate change that affect the natural

resources like soil,water and forest. Next is the industry there are 4 types of industry

the manufacturing,construction,electricity,gas & water and lastly mining & quarrying

and the extraction of minerals. It may be divided into two categories: genetic

industry, including the production of raw materials that may be increased by human

intervention in the production process; and extractive industry, including the

production of exhaustible raw materials that cannot be augmented through

cultivation..

the third one is service this thing produce intangible supporting and

complementing production in the other sector and among its industries. The service-

producing sector includes the divisions of transportation, communications,and

utilities; (2)wholesale trade;retail trade finance, insurance, and real estate; public

administration; and services. Service sector is important because it contributes In the

gross domestic product in most of the countries it is because it provide jobs,inputs

and public service for the economy. The advantage of service sector was the in

demand industry has helped the fuel services like dog grooming,walking the

dog,cleaning the house, online shopping these things are all service that people can

begin at their home.

Week 15 Competitiveness and efficiency

International trade is the lifeblood of the global economy. Basically when a good

or service is produced in. Most of the countries import a lot of things from china just

like Philippines.In a global setting, these industries are the least competitive despite

the country's natural resources mainly due to human factors affecting efficiency. The

uncontrollable nature occasionally disrupts production and causes damage to crops.

Productive efficiency means producing without waste, so that the choice is on the

production possibility frontier. In the long run in a perfectly competitive market,

because of the process of entry and exit, the price in the market is equal to the

minimum of the long-run average cost curve. In other Perfect competition, in the long

run, is a hypothetical benchmark. For market structures such as monopoly,

monopolistic competition, and oligopoly, which are more frequently observed in the

real world than perfect competition, firms will not always produce at the minimum of

average cost, nor will they always set price equal to marginal cost. Thus, these other

competitive situations will not produce productive and allocative efficiency.words,

firms produce and sell goods at the lowest possible average cost.Moreover, real-

world markets include many issues that are assumed away in the model of perfect

competition, including pollution, inventions of new technology, poverty which may

make some people unable to pay for basic necessities of life, government programs

like national defense or education, discrimination in labor markets, and buyers and

sellers who must deal with imperfect and unclear information. We explore these

issues in other chapters.

 Week 16 The Theory Of Consumer Behaviour

In the utility function a consumer aims to maximize the satisfaction that derives

from those who use a good or service. The utility is something intangible. In order to

make it easy to understand the concept of utility, we shall assume that it is

measurable in units, which we shall call utils, A util is one unit of satisfaction. In a

significance of consumer behavior in business The modern marketing concept is

consumer-oriented. To give a realistic implementation to this concept, a study of

consumer behaviour is imperative. More specifically, a study of consumer behaviour

is a must for developing an ideal marketing-mix; which is the cornerstone of the

concept of marketing.  for designing schemes of market segmentation  the success

of marketing management depends on designing schemes of product differentiation

and market segmentation, the background data for which is furnished by a study of

consumer behaviour. Culture is a complex of values, beliefs, attitudes and

understandings which are shared in common by aggregates of people, living in

organized societies; and which shape human behaviour to a particular style. Since

consumer behaviour is a part of human behaviour; culture has a profound effect on

consumer behaviour. Economic conditions of people have a significant effect on

consumer behaviour. There is no doubt that consumption habits, buying systems

and other aspects of consumer behaviour of the upper class, the middle class and

the poor class are considerably different.

 Week 17 The Production Theory

Production is a process of making, harvesting or creating something or the

amount of something that was made or harvested The theory of production is an

analysis of the input-output relationship. The term input refers to the resources used

to produce goods and services. Output refers to the product created as a result of

the combination of input in the production process. Quantity produced is a function of

labor and capital people

Q= ᵳ(L,K)

Output f (input) The production function is represented in the equation:

O = f (i)

where O stands for output and i stands for input. To be more specific, output

depends on the quantity of land, labor, and capital available. Thus:

O= f(Ld, Lb, C)

The production function contains the functional relationship between output and the

basic factors of land, labor, and capital. These basics factors complement each other

as they are used in the production of goods and services. Productivity is important

because it provide more goods and services to consumers also production helps to

increase export potential.

 Week 18 Socio-Economic Impact on business

In our bation succes or failure can effect the cosumer behavior if the economy is

strong,consumer is have more money to pumped into the thriving economy.A new

business, especially one that is innovative and focused on bringing some new

product or service to the market, is always welcome to the consumer who is looking

value for his money.Since the new seller will try to attract buyers, another strategy

that could be adopted is to improve the quality of the good making it a notch higher

than those already being sold in the market. Although this may mean high prices for

better quality goods, this could cater to a market that is more after quality than low

price. Since the new seller will try to attract buyers, another strategy that could be

adopted is to improve the quality of the good making it a notch higher than those

already being sold in the market. Although this may mean high prices for better

quality goods, this could cater to a market that is more after quality than low

price.Since the new seller will try to attract buyers, another strategy that could be

adopted is to improve the quality of the good making it a notch higher than those

already being sold in the market. Although this may mean high prices for better

quality goods, this could cater to a market that is more after quality than low price.
 Week 20 Socio-economic impact on business

The government policies directly impact the functioning of

the business enterprises. As a result, they have to alter

their policies appropriately. size limits business access to technology, credit and

market networks in the absence of government support services size their limits

business access to technology, credit and market networks in the absence of

government support services because of Due to limited purchasing power of income,

many Filipino consumers have become prices Sensitive and are only able to afford

cheap but shoddy items. Low quality characterizes local products especially

manufactures that are largely food items. Key areas in which legislation has

an impact on business are in Employment, Consumers, Environment, Competition,

and Health and Safety - so the aim of reducing red tape cannot be to remove

these regulations and protections, but rather to simplify and amend them. Capital

movements include both short- and long-term foreign investments in the country and

Filipino investments abroad. Financial flows involve international debts and loans

and their repayments.Economic factors that commonly affect businesses include

consumer behaviour, employment factors, interest rates and banking and inflation

and overall economic indicators. From the viewpoint of the economy, a BOP surplus

means that more foreign currencies are being sold for pesos than those being

bought with pesos.