Name:________________ Date:_____ Economics - Demand and Supply Mr. Mize
What is Best?
How do we determine Price(BEST)?
____________________________________________ Utility ____________________________________________
You mean, the more I buy the happier I’ll be?!?!
Quantity Marginal Utility Total Utility 1 2 3 5 6 7 8
Diminishing Marginal Utility ___________________________________________________________________________________________________________________
_______ + _______ = Demand $$Price$$ Quantity Demanded
As prices _____ people will buy _____. Law of… Demand As prices _____ people will buy _____. As prices _____ people will buy ____.
Demand Curve
Why does Demand work this way? Income Effect:_______________ _____________________________________________________________________ 2) Substitution Effect: __________ ______________________________________________________________________________
What’s the difference?
Inferior Goods: ______________ _____________________________________________________________________ Normal Goods: ______________ __________________________________________________________________
Substitutes: _______________ ____________________________________________________ Complements: _____________ ____________________________________________________
Change in Quantity Demanded A movement _______ a given demand ________ caused by a ___________ in demand _______. The only _________ that can cause a change in quantity demanded is _______.
Change in Demand A ______ of the demand _______ caused by a __________ in one of the _________ of demand . A change in demand is caused by any factor affecting demand _________ price.
Plot a change in the Quantity Demanded Lets practice… Plot a change in the Quantity Demanded
Lets practice… Plot a change in Demand
_________ + ______ = Supply $$Price$$ Quantity Supplied 700 600 500 300 200 100
Producers are willing to sell… _____ for a _______ price and Law of… Supply Producers are willing to sell… _____ for a _______ price and ____ for a ______ price.
Supply Curve