Demand

Warm Up What do you already know about the law of Supply and Demand? In what ways have we seen this law of supply and Demand played out in class?

Homework: Community Service Project Proposal Write 1 paragraph on What you propose to do for Community Service. Be sure to include: The type of Community Service you are doing Who your Community Service Supervisor is Where You are Doing the Community Service Why Your Community Service is Important

Learning Objectives Analyze how Demand impacts Economics Engage in Kinesthetic Learning Build Connections to your Life

Looking Ahead: Quiz Next Week Start Studying Today!!!

Analyzing Demand Demand: Desire to own Something and the Ability to Pay for it Law of Demand: Consumers buy more of a good when its price decreases and less when its price increases Substitution Effect: When Consumers React to an Increase In a good’s price by consuming less of that good and more of other goods Income Effect: Change in Consumption resulting from a change in Income

Make that Money: Eliminate the Competition Write a 1-Paragraph Scenario In which you Become a Competitor for Producing a good that you think is overly priced Your Scenario has to Demonstrate the Law of Demand, Substitution, and Income Effects You have to explain why you are going to be making money in this scenario You need 5 Graphics or Images to help Explain the Scenario you have created

Demand Schedule Market Demand Schedule: A Table that Lists the Quantity of a good All Consumers in market will buy at each different price Individual Demand Schedule: Table That lists the quantity of a good that one person will buy at each price Under your paragraph, Create an Individual Demand Schedule and a Market Demand Schedule for the Good that you are producing

Biggie’s Individual Demand Schedule Price of Dog Treats Quantity Demanded Per Day $1.00 5 $2.00 4 $3.00 3 $4.00 2 $5.00 1 $6.00

Biggie inc.’s Market Demand Schedule Price of Dog Treats Quantity Demanded Per Day $1.00 300 $2.00 250 $3.00 200 $4.00 150 $5.00 100 $6.00 50

Check For Understanding What is the difference between an Individual and Market Schedule? Which one would fall under MacroEconomics and Which one would fall under MicroEconomics? Why do you think there is less Demand for the higher priced Products? What does this tell Biggie about His supply of Dog Treats?

Create an Individual and market Demand Curve Demand Curve: A Graphic Representation of a Demand Schedule

Exit Ticket What happens to the Demand of Goods When prices go Up? Which is more beneficial to a business Owner: Individual or Market Schedule? Why?

Time To Work On Study Guides/Homework Use this in-Class Time to Work on Completing Your Study Guide or writing your Community Service Project Proposal

Warm Up How does the price of a good impact demand? What other Factors could impact the demand of a good other than price?

Homework: Community Service Project Proposal Write 1 paragraph on What you propose to do for Community Service. Be sure to include: 1. The type of Community Service you are doing 2. Who your Community Service Supervisor is 3. Where You are Doing the Community Service 4. Why Your Community Service is Important

Learning Objectives Analyze the Factors that impact demand Engage in Collaborative Learning Interpret Demand Vocabulary

Looking Ahead Quiz Next Week

Factors that can Change the Demand of a good Price Income Consumer Expectations About the Future Population/Demographics Consumer tastes and Advertising: Trends, Media, Advertising

Check For Understanding Rank the Factors that Can Change the Demand of a good from Most Impactful to Least Impactful Be Ready to Explain why You ranked the factors in the way that you did

Create your own Business based on Factors that Impact Demand In a Group of 4-5, create a business, and come up with a List of at Least Five reasons why this would be a good Business to start based on the Factors that Impact Demand Be sure To Include How the Law of demand Impacts your Business Be Prepared to Explain how Substitution and Income Effect Impact your Business Create a Market Demand Schedule (Graph) for your Business Include at least 5 Graphics that show how you are going to advertise your business

Journal 5: The Surging Hispanic Economy What do Nationwide Statistics, from 1990-2003, tell us about the income of Latinos? What examples of Hispanic entrepreneurs does the article give? According to the article, why were some businesses having trouble selling products to the Hispanic market? This Article focuses on Charleston, S.C.- Do you think it would be different if the author focused on California? Why or Why not? Which Demand factor do you think is most important when Considering the Economic Changes as a result of increasing Hispanic consumers, producers, Employees, and Employees?

Normal and Inferior Goods Normal Good: Good that consumers demand more of when the income of the consumer increases Inferior Good: Good that consumers demand less of when the income of the consumer increases Create a list of 5 goods that you would consider Normal and Inferior Goods

Complements and Substitutes Complements: Two goods that are bought and used together Substitutes: Goods used in Place of One another Create a list of 3 Goods that would be considered Complements and 3 goods that would be considered substitutes

What factors can impact the Demand of A good? Exit Ticket What factors can impact the Demand of A good?

Warm UP List 5 goods that you Need on a daily basis What would happen if the price of the good Doubled? Tripled? Quadrupled?

Homework Write 1 paragraph on What you propose to do for Community Service. Be sure to include: 1. The type of Community Service you are doing 2. Who your Community Service Supervisor is 3. Where You are Doing the Community Service 4. Why Your Community Service is Important

Learning Objectives Enhance Public speaking Skills Engage in Artistic Expression Build Connections to your own life

Looking Ahead Quiz Next Week

Homework Sharing Each person will Present their Community Service Project Proposal to the Class All Classmates will record who is doing what project Remember good Public Speaking Skills (Engaging Voice, Pacing, Looking At Audience)

Elasticity and Demand Elasticity of Demand: Measure of how consumers react to a change in price Inelastic: Describes demand that is not very sensitive to a change in price Elastic: Describes demand that is very sensitive to a change in price

Artistic Expression For each of the following terms, create a drawing to show what they mean: Elastic Inelastic Elasticity of Demand

Brainstorming What factors can you name that will affect the Elasticity of a good?

Factors that Affect Elasticity 1. Availability of Substitutes 2. Importance 3. Necessities vs. Luxuries 4. Price Changes over Time

Check for Understanding What goods can you think of that used to be luxuries but are now considered necessities? How has this change over time impacted the Elasticity of these goods? What is Ethics? How Could Demand become an Ethical issue?

Total Revenue Total Revenue: The Total Amount of Money a Firm receives by Selling Goods or Services Think about the following producers: Which can expect a revenue increase from higher prices and which can expect a revenue decrease from higher prices. Be ready to explain why you think this: Pharmaceutical Companies Entertainment Software Companies PG&E Sportswear ManufactureR

What is Elasticity and what Role does it play in Economics? Exit Ticket What is Elasticity and what Role does it play in Economics?

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