Demand

WALT: Construct a demand schedule

Consumers A consumer is anyone who buys or uses goods or services All of the consumers in your home make up a household

Demand is the quantity of a good or service that a consumer is willing and able to purchase.

The law of demand As the price increases, the quantity demanded decreases, vice versa, ceteris paribus

Ceteris paribus means everything else is held constant and only price is allowed to change. We know in reality you can’t do this but just pretend.

Demand Schedules This is a table that shows the quantity of a good or service a consumer is willing and able to buy at each price A demand schedule must have: A title stating who the demand is for, in what time period and what good is being demanded. Price ($) in the left hand column, going from lowest to highest Quantity demanded in the right hand

Demand Schedule Example TITLE: Lillie’s Demand for chips per week Price ($) Quantity Demanded 1 5 2 3 4

Workbooks pages 18-21

WALT: Construct a demand curve from a given schedule

Demand Curve A curve that shows the quantity demanded of a product Lillies weekly demand for chips Price ($) Quantity (Packets of chips)

TALL Title Axis Labels Line TALL helps us remember the key points to draw an accurate line graph.

WALT: Show price changes on a demand curve

Change in the Quantity Demanded Price is the only thing that will change the quantity demanded. A change in price moves you along the Demand curve. An increase in price causes a decrease in the Quantity demanded An decrease in price causes an increase in Quantity demanded Price and quantity move in opposite directions

LAW OF DEMAND As price decreases then quantity demanded increases or as price increases quantity demanded decreases, ceteris paribus. P $ D Q

Powerade has increased from $1 to $2 - show the effects on your graph Requirements D – dotted lines A – Arrows (3) L – Labels (new and old price, new and old Quantity) P2 P1 Q2 Q1

Law of Demand As price increases from $1 at P1 to $2 at P2, the quantity demanded decreased from 5 bottles per week at Q1 to 3 bottles per week at Q2. This is because Powerade has become less affordable for Sam

Workbooks Exercises page 28-30