CASE STUDY

1.Do you think demand for pinoy pandesal and Pinoy tasty is Elastic? What do you think will happen to
the demand for pandesal and tasty when prices increase by 15% and by 100%?

- The demand is about the willingness and ability to consume a given good.Since pandesal is part of the
Filipino breakfast and if the price of pandesal and tasty will increase by 15%, the demand would be
considered inelastic.They may still buy the product but they will lessen the quantity and the demand
would still be there.According to the law of demand, as the price of good decreases, the quantity
demanded of that good increases. While if its increase by 100%, the demand may become
Elastic.Because it would really affect the demand of consumer and it's such a big jump in its price from
what its price before. Generally, demand will change depending on how high the price is.If the price of
goods decrease, the demand increases. And if the price increases, the demand decreases.

2.What do you think will happen to the supply of pandesal and tasty if the price of locally milled flour
increases by 15% and by 100%?

- Supply is a fundamental economic concept that describes the total amount of a specific good or
service that is available to consumers. If the locally milled flour by 15%, the supply would just become
smaller or they will just lessen the supply and it won't decrease that much. Unlike if its increases by
100%, that's the time that supply would decrease on what quantity supplied before and shortage
possibly happen especially when the demand for pandesal is high. Flour is the main ingredient of
Pandesal and Tasty, once the price of Flours increase its price, Supply would be lessen and ir depends on
how big the percentage is.

3.What are the substitutes for pandesal and tasty? Do you think prices of these substitutes will likewise
increase?

-Pandesal and tasty are part of Filipino Breakfast.We have what we called direct substitute where in
we could find other kind of breads which has lower price. And we also have indirect substitute which we
find another option apart from breads such as Fried rice.But for me, the substitute for pandesal and
tasty is either direct or indirect as long as it satisfy our need as customers. The price of substitutes will
likewise increase if people decided to switch onto those substitutes, because the demand for those
substitutes goods goes up.So that, the price will possibly increase. If the price of one of the products
rises, then demand for substitute goods or good is likely to increase.
4.Do you think the Government should implement a price ceiling for pandesal and tasty?

-Price ceiling is a government-or-group imposed price control, or limit, on how a price is charged for a
product, commodity, or service.For me, if the Government implement a price ceiling and if we are in
suppliers side, I think it will be a burden for them and they will.suffer. Because they are not just
considering the price of the product they are producing, also the price of raw material that are used to
make an output. Once the price of the ingredients goes up, the price of the goods will also increase. So if
Governments set a price ceiling and producers exceed on that, then the problem will occur. Let us
imagine, if the prices of raw materials goes up then the producers follow the price ceiling, which the
price of the products shouldn't exceed from the limit and considering the high demand of customers.
Producers will suffed from shortage which they can't meet the demand of the customers.Because the
supply will be lessen if the prices of raw materials used increases.