* if a product is very vital

to the consumers, they

Chapter 3 have to have it despite the
remarkable increase in its
CONSUMER'S price. On the other hand,

RESPONSIBILITY there are goods in which a

slight increase in their
AND ELASTICITY prices make many

Feliciano Fajardo consumers hesitant to buy

- “buyers and consumers such products. They can

are willing to buy greater still live without the said

tangible and intangible products.

goods at lesser prices than

higher prices.”
PRINCIPLES BEHIND
CONSUMER CHOICE
ELASTICITY OF DEMAND
Demand elasticity 1. There is always a limited
- refers to the reaction or income, while unlimited
response of the consumers desires necessitate choices.
to alterations in price of
goods and services. As said 2. Consumers make good
earlier, consumers tend to choices to achieve their
decrease their purchases purposes.
as price increases, and
tend to increase their 3. Consumers can substitute
purchases whenever price between "like" goods and
decreases. services.
4. Consumers make
CONSUMER DEMAND
decisions based on
CURVE
imperfect information.
1. Diminishing Marginal
Utility
5. Law of Diminishing Utility:
- implies that as the price of
- As additional units of
a good rises, the amount
goods consumed increase
demanded by the consumer
utility, adding another unit
will most likely go down.
and additional more units
would mean that utility will 2. Income and Substitution
eventually decline. Effect - is associated with
change in price.

HOW DO CONSUMERS
RELATIONSHIPS AMONG
BEHAVE IN MAKING A
TOTAL REVENUE, TOTAL
CHOICE?
EXPENDITURES, AND PRICE
ELASTICITY OF DEMAND
Consumers will tend to
adjust consumption of a % Expenditures @ %
good or service until the Price + % Quantity
marginal utility of
1. Inelastic Demand
consuming the good just
- When elasticity of
equals the price of the
demand is less than one
good-and service.
in absolute value, a 10%
fall in price increases
quantity demanded by
less than 10%. - Such products are not
- the total expenditure by very important to them,
consumers and the total but they give comfort and
revenue received by firms pleasure to the consumers
fall. and buyers.
* luxury goods like
2. Elastic Demand components, moving
- When elasticity of cameras, VCD's, etc.
demand is greater than
one in absolute value, a 2. Inelastic Demand.
10% fall in price - A change in price
increases quantity results to a lesser change
demanded by more than in quantity demanded.
10%. - consumers are not
- the total expenditure by sensitive to price change.
consumers and the total - Products under very
revenue important to consumers.
received by the firms rise. - They cannot live without
such goods like rice,
THERE ARE FIVE (5) TYPES OF
medicine or shelter.
DEMAND ELASTICITY

3. Unitary Elastic Demand.

1. Elastic Demand.
- A change in price results
A change in price results
to an equal change in
to a bigger change in
quantity demanded.
quantity demanded.
change in quantity
- consumers are very
demanded.
sensitive to price change.
- semi-important goods. REACTIONNS OF BUYERS
*Some types of clothing or BROUGHT ABOUT BY PRICE
shoes are either luxury or
CHANGE
essential goods.

4. Perfectly Elastic Demand.

- In the absence of change

in price, there is an
infinite change in
quantity demanded.

5. Perfectly Inelastic
Demand.
- An infinite change in
price creates no change in
quantity demanded.
- This is an extreme
situation which involves life
or death to a person.
- Regardless of price, he has
to buy the product like a
medicine with no substitute.

TYPES OF DEMAND
ELASTICITY SHOWING THE
VARIOUS DEGREES OF
DETERMINANTS OF
3. Importance of the Product
DEMAND ELASTICITY
to the Buyers.
1. Number of Substitute - Luxury goods are not very
Goods. Demand important to many people.
- is elastic for a product with *Examples are diamond
many good substitutes. earrings. BMW sports cars,
- An increase in the price of collectors items, elegant
such product induces wardrobes, etc. These are
buyers to look for good elastic.
substitutes. On the other - essential goods are very
hand, products without important to people. Rice
good substitutes have is so important to all
inelastic demand. consumers. Electric
*. Example, electric current power is important to
for industry. factory owners. Gasoline
is important to the
2. Price Increase in
transportation industry.
Proportionate to Income
All of these are inelastic.
- If the price increase has
very slight effect on the
income or budget of the PRICE ELASTICITY OF
consumers, demand is DEMAND
inelastic.
Economists - have devised a
- the result is only a slight
formula to measure such
decrease in quantity
responsiveness of
demanded.
consumers demand to price 2. Increase in price AP > will
changes. always reduce the quantity
demanded AQ<0.

This is known as the price

elasticity of demand.

3. Shows the degree of

The price elasticity of
consumers responsive to
demand
variations in the price of
- is the ratio of the
good.
percentage change in
quantity of a given good 4. Price Elasticity is affected
demanded to the by:
percentage change in its
a. Availability of Substitutes
price.
- demand more substitutes
mean more elastic
THE DETERMINANTS OF PRICE
b. Share of Total Budget
AND INCOME ELASTICITY OF Spent on Good - smaller
DEMAND share means less elastic
demand

c. Length of Time Period -

the longer the time period,
the more elastic demand.

THE FORMULA FOR PRICE

1. Is always negative
ELASTICITY OF DEMAND: demanded would become
10 units. The price
elasticity of demand for this
change in price can be
computed by the above
formula.

where:

Q = change in quantity
demanded
Q = original quantity
demanded
P = change in price
Po = original price

Assume that the old price

(or the price prior to
change) is 22 with
quantity demanded
being 6 units. Now, if the
price is to be lowered to 20
a unit, the quantity
 -Clearly, the market price of
Values of E a product influences wages,
1.=0 rents, interests and profits
2. 0>but<1
3.=1 with the right pricing
4. 1 but<10 strategy.
5. infinite a

Kinds of E BUSINESSMEN MAY ATTAIN THE

1. Perfectly Inelastic FOLLOWING GOALS :
2. Relatively Inelastic
3. Unit Elastic a. achieve target return of

4. Relatively Elastic investment

5. Perfectly Elastic b. maintain or improve a

share in the market;
c. meet or prevent
ECONOMIC SIGNIFICANCE
competition; and
OF DEMAND ELASTICITY d. maximize profits.
- For instance, a good
knowledge of demand
PRACTICAL EXAMPLES OF
elasticity helps the
ECONOMIC SIGNIFICANCE OF
businessmen in planning
their pricing strategies. ELASTICITY OF DEMAND:
- In the case of the
1. Wage Determination.
government, elasticity
- If the product has an
guides the economic
elastic demand, reduction
managers in formulating
in its price increases
appropriate tax programs.
quantity demanded. This
means more sales and
more profits. The company Otherwise, instead of
is in a position to raise the getting more money from
wages of its workers. But if the people, they will get
the demand is less. It is not advisable to
increase taxes on goods
inelastic, a reduction in with high elastic demand.
its price has very little
effect in sales.
ELASTICITY OF SUPPLY
2. Farm Production Guide. Supply elasticity - refers to
- Most agricultural products the reaction or response of
like rice, coconut and sugar the sellers/producers to
are inelastic. price change of goods.
The quantity demanded Based on the law of supply,
does not change much even producers are willing and
if there is a big decrease or able to offer more goods at
increase in price. a higher price, and less
goods at a lower price.
3. Maximize Profits.
- A reduction in prices
FIVE (5) TYPES OF
causes more quantity
demanded. ELASTICITY OF SUPPLY:
4. Imposition of Sales Taxes.
1. Elastic Supply - A change
in price results to a greater
- Government planners
change in quantity supplied.
should exercise prudence in
This means producers are
taxing goods and services.
very responsive to price
change. ELASTICITY SHOWING THE
JARIOUS DEGREES OF
2. Inelastic Supply - A
change in price results to a REACTIONS OF
lesser change in quantity SELLERS/PRODUCERS
supplied. This shows that
BROUGHT ABOUT BY
producers have weak
response to price change. PRICE CHANGE

3. Unitary Supply - A change

in price results to an equal
change in quantity supplied.

4. Perfectly Elastic Supply -

Without change in price,
there is an infinite (without
limit) change in quantity
supplied.

5. Perfectly Inelastic Supply

- The change in price has no
effect on quantity supplied.

TYPES OF SUPPLY
 other hand, if it takes a long
time to produce the
products, then supply is
inelastic.

Factory products - are

generally elastic. If a
factory has sufficient
available raw materials, it
can
DETERMINANT OF SUPPLY
increase its output by hiring
ELASTICITY
more workers and let them
The principal determinant of work overtime.
supply elasticity - is the
time involved in the ability Agricultural or farm
of products to respond to products - are usually highly
price changes. If it takes a inelastic. It takes months or
short time to produce to years to produce
take an advantage of an vegetables, fruits and crops.
increase in price, then Clearly, this is one of the
supply is elastic. On the disadvantages of agriculture
or farming. Products cannot take advantage of
immediately response to a substitutes.
price increase.

THE IMPACT OF TIME ON THE

Quantity supplied - formula
ELASTICITY OF SUPPLY
in measuring the degree of
elasticity of supply, the one 1. Elasticity of supply
which is used in demand usually increases in the long
elasticity is also applicable. run as more time is allowed
to the firms to adjust
production in response to
REASONS FOR THE price changes.

INCREASE OF THE
PRICE ELASTICITY
DEMAND 2. Over time, firms can
adjust the levels of all
factors of production in
Second Law of Demand says
optimal ways to meet
that buyers' response will
changes in price.
be greater after they have
had time to adjust more
fully to a price change. MIDPOINT FORMULA OF
Why? PRICE ELASTICITY
- Because they are better
able to rearrange
consumption patterns to
 P2 is 10.00 price level

Assuming that:
INCOME
Q1 is 2 pcs. of green mangoes
ELASTICITY OF
P1 is 15.00 price level DEMAND

Q2 is 4 pcs. of green mangoes THIS IS THE MEASURE

OF THE
RESPONSIVENESS OF
DEMAND TO CHANGES
IN INCOME. Culture in the
HOW TO MEASURE: P
Curriculum
DEFINITION : Philippine popular
culture refers to the set of
practices, beliefs, and objects that
are dominant or prevalent in
mainstream Filipino society. It
includes forms of media such as
television, film, music, fashion,
social media trends, and pop icons,
among others.

IMPORTANCE IN THE
CURRICULUM:
 Cultural Identity: Teaching
Philippine popular culture in
schools helps students understand
the current socio-cultural
environment and their role in it. It
connects the past with the present
by exploring how history,
traditions, and indigenous
THIS IS THE
practices influence contemporary
MEASURE OF THE trends.
RSPONSIVENESS  Critical Thinking: Studying
OF THE QU popular culture encourages
students to analyze how media
Philippine shapes attitudes, behaviors, and
Popular beliefs, fostering media literacy
and critical thinking.
 Engagement: Incorporating 4. Filipino Films and Cinemas:
popular culture makes learning Investigating how local cinema
more relatable and engaging for portrays Filipino values and current
students, as it connects academic socio-political issues.
subjects to their everyday
5. Street Fashion and Trends: How
experiences.
Filipino youth culture influences
 Social Awareness: It promotes and adapts global fashion trends
discussions about social issues into a unique local style.
such as gender, class, and race, as
6. Celebrities and Social Influence:
these are often represented in
How Filipino celebrities shape
popular media.
public opinions and

SAMPLE TOPICS FOR trends in modern society.

PHILIPPINE POPULAR CULTURE 7. Philippine Festivals and Pop
IN THE CURRICULUM: Culture: Understanding how
popular festivals like
1. Pinoy Teleseryes: Examining
common themes in Filipino soap Sinulog and Ati-Atihan have been
operas such as family values, social commercialized and celebrated in
mobility, and romantic the media.
relationships.

2. OPM (Original Pilipino Music): SAMPLE ACTIVITY:

Exploring the evolution of Filipino  Media Analysis: Students can be
music genres and how they reflect tasked to analyze a popular Filipino
social change. TV show or movie, identifying the
3. Influence of Social Media: cultural themes, social issues, and
Analyzing the impact of platforms the message it conveys about
like TikTok, Facebook, and YouTube Filipino society.
on Filipino youth and their identity.
By integrating these topics into the
curriculum, students not only gain
a deeper appreciation for their
culture but also learn to critically
engage with the media and trends 5. Cultural Lag
that shape modern Filipino society.
 Definition: The period of
1. Sociology maladjustment when the non-
material culture is still struggling to
 Definition: Sociology is the study
adapt to new material conditions.
of human society, social behavior,
and social institutions.  Sample: Technological advances
in social media vs. cultural norms
 Sample: How do social classes
around privacy.
impact access to education in
urban areas? 6. Socius

2. Linguistics  Definition: Refers to a companion

or social group.
 Definition: The scientific study of
language and its structure.  Sample: In sociology,
understanding one's socius is key
 Sample: What is the role of code-
to grasping their role in society.
switching in bilingual societies like
the Philippines? 7. Cultus

 Definition: Refers to the rituals

3. Mores
and religious beliefs of a group.
 Definition: Social norms that are
 Sample: How cultus practices
widely observed and have great
differ between major world
moral significance.
religions.
 Sample: In many cultures,
respecting elders is a common 8. Economics
more.  Definition: The study of
production, consumption, and
4. Anthropology
transfer of wealth.
 Definition: The study of human
 Sample: How do government
societies, cultures, and their
policies affect inflation rates?
development.
9. Auguste Comte
 Sample: How do burial practices
vary across indigenous groups in
Southeast Asia?
 Definition: A French philosopher  Definition: Characteristics
considered the father of sociology commonly associated with Filipino
and positivism. people, such as “pakikisama”
(social harmony).
 Sample: What is Comte’s theory
of social evolution?  Sample: How do Filipino traits
influence workplace dynamics?
10. Political Science
14. Bayanihan
 Definition: The study of political
institutions, processes, and  Definition: A Filipino concept of
behavior. communal unity and cooperation.

 Sample: What is the significance  Sample: Examples of Bayanihan

of political dynasties in the are seen in community efforts to
Philippines? help families in need after a natural
disaster.
11. Material Culture
15. Filipino Cuisine
 Definition: Physical objects,
 Definition: The traditional food of
resources, and spaces that people
the Philippines, rich in flavors and
use to define their culture.
diverse influences.
 Sample: How does clothing in
 Sample: What are the main
tribal communities reflect their
ingredients of a typical Filipino dish
social status?
like Adobo?
12. Immaterial Culture
16. Logus
 Definition: The intangible aspects
of culture, such as beliefs, norms,  Definition: Refers to speech or
and values. reasoning in philosophy and
language.
 Sample: The belief in “kapwa”
(shared identity) as part of Filipino  Sample: The use of logus in
culture. understanding debates and
discourse in society.

13. Filipino Traits

17. Cultural Anthropology
 Definition: The study of  Definition: Informal norms or
contemporary human cultures and everyday customs that may be
how they develop. violated without serious
consequences.
 Sample: The impact of
globalization on indigenous cultural  Sample: In the Philippines,
practices. removing shoes before entering a
house is a folkway.
18. Social Organization
22. Fossils
 Definition: The patterned
 Definition: Preserved remains or
relationships among individuals
traces of ancient organisms.
and groups.
 Sample: How do family structures  Sample: What do the fossils of
vary between urban and rural Homo luzonensis tell us about
societies? early human inhabitants of the
Philippines?
19. Convergence 23. Microsociology
 Definition: The process of  Definition: The study of
different cultural groups coming individual or small group
together and adopting elements of interactions in specific contexts.
each other’s culture.
 Sample: How do people interact
 Sample: The blending of Spanish, in public transportation systems
American, and indigenous like jeepneys?
influences in Filipino culture.
24. Artifacts
20. Archaeology
 Definition: Objects made by
 Definition: The study of human humans, typically of cultural or
history through excavation of sites historical interest.
and analysis of artifacts.
 Sample: The Laguna Copperplate
 Sample: What is the significance is an important artifact in
of the discovery of Tabon Caves in Philippine history.
Philippine history?
25. Norms
21. Folkways
 Definition: Social rules and  Sample: Rizal’s novel Noli Me
expectations that guide behavior. Tangere critiques colonialism in the
Philippines.
 Sample: The norm of saying "po"
and "opo" when addressing elders 30. Kublai Milan
in the Philippines.
 Definition: A Filipino artist known
26. Deviant for his large-scale sculptures and
paintings that
 Definition: Behavior that violates
social norms. reflect Filipino culture.

 Sample: In many societies, public  Sample: What themes does

intoxication is considered deviant Kublai Milan explore in his
behavior. artwork?

31. Philippine Arts

27. History
 Definition: Encompasses
 Definition: The study of past
traditional and contemporary
events, particularly in human
visual, performance, and literary
affairs.
arts in the Philippines.
 Sample: How did the Spanish
 Sample: How do traditional art
colonization shape the Philippine
forms like tinikling represent
socio-political structure?
Filipino culture?
28. Kwentong Bayan
32. Sining
 Definition: Folktales or stories
 Definition: The Filipino word for
from Filipino tradition, often
"art."
passed orally.
 Sample: The sining of Filipino
 Sample: The legend of "Maria
indigenous tribes, such as their
Makiling" is an example of a
weaving patterns, reflects their
kwentong bayan.
connection to nature.
29. Dr. Jose Rizal

 Definition: A Filipino nationalist, TUMBANG PRESO

writer, and revolutionary, regarded Origin: Popular in rural areas.
as a national hero. Mechanics: A player guards a can,
while others try to knock it down retrieve an object (pamato)
with a slipper. The guard must tag without stepping on the lines.
players trying to retrieve their
slippers without being tagged. LUKSONG BAKA
PATINTERO Origin: Common in rural and urban
areas.
Origin: Derived from street games Mechanics: Players jump over
played in open spaces. another person (acting as the
Mechanics: Two teams compete. "baka" or cow), who gradually
One team runs past lines guarded increases their crouched height.
by the opposing team without
being tagged. TAGUAN (HIDE AND SEEK)
LUKSONG TINIK Origin: Played by children
throughout the Philippines.
Origin: Played in various provinces Mechanics: One player seeks,
in the Philippines. while the others hide. The seeker
Mechanics: Players take turns finds and tags players within a
jumping over a growing stack of specific area.
hands or feet arranged by the
other team. TATSING
SIPA Origin: Popularized in schoolyards
Origin: Pre-colonial game, similar and open spaces.
to sepak takraw. Mechanics: Players aim to hit and
Mechanics: Players kick a rattan or flip bottle caps (tansan) using a
metal washer (sipa) to keep it stronger cap.
airborne, aiming to make as many
kicks as possible without letting it
fall.
AGAWAN BASE
PIKO Origin: Played during festivals and
gatherings.
Origin: Played by children on the Mechanics: Two teams compete to
streets. tag members of the opposing team
Mechanics: Players hop through a while defending their own base.
grid drawn on the ground and
PALO SEBO Origin: Popular in both rural and
urban settings.
Origin: Introduced during the Mechanics: Players aim to hit
Spanish era, common during marbles out of a designated area
fiestas. using their own marble.
Mechanics: Players climb a greased
bamboo pole to reach a prize at BAHAY-BAHAYAN
the top. Origin: Role-playing game inspired

LANGIT LUPA by family life.

Mechanics: Children role-play as
Origin: Simple tag game popular
with young children. members of a family, simulating
Mechanics: One player is "it" and daily activities and Chores.
must tag others who can escape by
stepping on higher ground
("langit").

SUNGKA
Origin: Traditional board game
played with shells and a wooden
board.
Mechanics: Players take turns
distributing shells across rows of
holes, aiming to collect the most
shells in their respective stores.

CHINESE GARTER
Origin: Influenced by Chinese
culture, played by school children.
Mechanics: Two players hold the
ends of a garter while others jump
over it at increasing heights.

HOLEN (MARBLES)