Meeting 07

Andrew Pua

2025-02-04

Plan for today

  1. Recap

  2. A bit more theory

    • Why do demand curves slope downward?
    • Why do supply curves slope upward?

  3. Work on some of the questions from the announcements

Recap

  1. When you hear or see the word “market” discussed in economics, does it necessarily have a physical manifestation? Can you give examples?

  2. Observe the prices of different types of fuel available at fueling stations around your area. Gather their prices and their locations. What do you notice?

Question

Keeping mind how much you and your family have, what is the maximum price you are willing to pay for a new 512GB/12GB Titanium Jetblack Samsung S25 Ultra with a 2-year service contract but no trade-in?

  1. 110,000 pesos
  2. 80,000 pesos
  3. 50,000 pesos
  4. 20,000 pesos
  5. I wouldn’t buy one even if it is free.

Question

If you have 4 times as much as you and your family currently have, what is the maximum price you are willing to pay for a new 512GB/12GB Titanium Jetblack Samsung S25 Ultra with a 2-year service contract but no trade-in?

  1. 110,000 pesos
  2. 80,000 pesos
  3. 50,000 pesos
  4. 20,000 pesos
  5. I wouldn’t buy one even if it is free.

Question

Suppose you suddenly had 30,000 pesos in savings. Keeping mind how much you and your family have, what is the maximum price you are willing to pay for a new 512GB/12GB Titanium Jetblack Samsung S25 Ultra with a 2-year service contract but no trade-in?

  1. 110,000 pesos
  2. 80,000 pesos
  3. 50,000 pesos
  4. 20,000 pesos
  5. I wouldn’t buy one even if it is free.

Question

Keeping mind how much you and your family have, what is the maximum price you are willing to pay for a new 512GB/12GB Titanium Jetblack Samsung S25 Ultra with a 2-year free service contract but no trade-in?

  1. 110,000 pesos
  2. 80,000 pesos
  3. 50,000 pesos
  4. 20,000 pesos
  5. I wouldn’t buy one even if it is free.

Question

Suppose a Samsung S25 which costs 52,000 pesos is now 45000 pesos. Keeping mind how much you and your family have, what is the maximum price you are willing to pay for a new 512GB/12GB Titanium Jetblack Samsung S25 Ultra with a 2-year service contract but no trade-in?

  1. 110,000 pesos
  2. 80,000 pesos
  3. 50,000 pesos
  4. 20,000 pesos
  5. I wouldn’t buy one even if it is free.

Why do demand curves slope downward? Why do supply curves slope upward?

  1. When you hear or see the word “prices” discussed in economics, does it have to be necessarily have to be expressed in monetary terms?
  2. What are the connections to past meetings and Chapters 1 and 2?