Tell me several different things you think about when deciding whether or not to buy something. What is the most important thing you consider when you buy something? 1 Take out assignment 1. What will we learn today? What will we learn today? Standard Monetary and non-monetary incentives and how they change behavior. Standard Relationship between incentives and law of supply and law of demand. Unit: Demand Day 2 Directions: On Day 2 of your Bellwork, answer the following question. You need to write a one paragraph response, so fill out all of Day 2. There should be little to no talking during the Bellwork.

Proof that the practice tests work: 2

Group presentation on healthcare 3

Continue to fill out Assignment 1 4

Government Regulation Booklet Food and Drug Administration Federal Communications Commission Federal Aviation Administration Environmental Protection Agency Consumer Product Safety Commission G o v e r n m e n t R e g u l a t i o n s 5

Assignment 2: Movie Response Write me a two paragraph response to the movie. Tell me what you thought. In your response, answer the following questions: What country had a system that you liked? What country had a system that you disliked? Did the film change the way you thought about the healthcare situation? Do you think healthcare should be reformed in America? Do you think it ever will? 6

Assignment 3: 4.1 Understanding Demand Demand: the desire to own something and the ability to pay for it Law of demand: when a good’s price is lower, people will buy more of it. Higher = people buy less Example: if pizza is a dollar, people buy more. If pizza is ten dollars, people will buy less. 7

Substitution effect: when people react to an increase in price by consuming less of that good and more of other goods Example: pizza got more expensive, so I ate hot dogs instead. Pizza’s price going up resulted in my buying more hot dogs. Income effect: the change in consumption resulting from a change in real income Example: John buys two donuts every morning for $1 (50 cents each). One day the price goes up to $1 each. Now John just buys one. The demand for donuts goes down. 8

Demand schedule: a table that lists the quantity of a good a person will buy at each different price. Market demand schedule: a tablet hat lists the quantity of a good that all consumers in a market will buy at each different price 9

Demand curve: a graphic representation of a demand schedule Lowest price on the bottom, highest on top. Lowest quantity on the left, highest on the right. 10

Assignment 4: pg. 83,

Homework: Complete all assignments 12