Do Now! Have you ever bought something that was on-sale?

Slides:

Advertisements

Similar presentations

“Supply, Demand, and Market Equilibrium”

Advertisements

Chapter 4 Demand. Free Enterprise Economy In the United States producers make and sell goods at the highest possible price. Buyers buy goods at the lowest.

CHAPTER 3, SECTION 1- THE NATURE OF DEMAND

Supply and Demand DEMAND DEFINED What is Demand? Demand is the different quantities of goods that consumers are willing and able to buy at different.

Demand Notes Quantity Demanded- the quantity of a good or service consumers are willing and able to purchase at a specific price at a given point in time.

Chapter 3. Demand Demand (D) is the amount of a good or service a consumer is willing and able to purchase at various prices during a given period of.

Chapter 4.  Demand – the desire AND ability to own or purchase  Does not refer to wishes or dreams  Law of Demand – the more it costs, the less you.

Demand and Supply Chapters 4, 5 and 6. Demand demand is a schedule that shows the various amounts of a product consumers are WILLING and ABLE to BUY at.

1 Essential Question: Identify the two things that must happen in order for demand to occur, explain the difference between demand and quantity demanded,

DEMAND. What you write: Demand (D) is the desire, willingness, and ability to buy a good or service Demand is on the consumer’s side What you need to.

Demand The desire, ability and willingness to buy a product

Supply and Demand.

1) What is Supply? Supply- the amount of goods available

Demand P S D Q.

21.1 Demand and 21.2 Factors Affecting Demand

Unit 2: Demand, Supply, and Consumer Choice

Overview of Section 2 Pay close attention.

Supply and Demand.

Unit 2: Supply, Demand, and Consumer Choice

Unit 3: Supply, Demand, and Consumer Choice

Demand The desire, ability, and willingness to buy a product

Econ Unit One Day 8.

Unit 1: Basic Economic Concepts

Supply and Demand: Theory (Part I)

First student to do a star jump gets unlimited Mars® to eat this lesson.

Law of Demand The quantity demanded of a good or service varies inversely with its price Or, in plain English, people want to buy less of something when.

The Nature of Demand Demand—The amount of a good or service that a consumer is willing and able to buy at various possible prices during a given period.

Elasticity of Demand Unit 2.

Unit 1: Demand, Supply, and Consumer Choice

Unit 2: Supply, Demand, and Consumer Choice

Demand Section 1 – Nature of Demand

Demand Demand is a relationship which shows the various quantities consumers are willing and able to buy of a good at different possible prices of a good.

Demand, Supply, and Equilibrium

Unit 2: Supply, Demand, and Consumer Choice

Supply, Demand and Income Day One:

The Marketplace: Demand

Supply and Demand.

Unit 2: Supply, Demand, and Consumer Choice

Supply Unit 2: Supply and Demand.

ECONOMICS : CHAPTER 4-- DEMAND

Unit 2: Supply, Demand, and Prices

Unit 2: Supply, Demand, and Consumer Choice

Demand Graphs How do they change?.

Demand Chapter 4.

Demand Section 1 – Nature of Demand

Demand Section 1 – Nature of Demand

Supply, Demand, and Market Equilibrium

Unit 2: Supply, Demand, and Consumer Choice

Demand and Supply Chapters 4, 5 and 6.

Demand: Desire, ability, and willingness to buy a product

Shifts in Demand Unit 2.

Supply Unit 2: Supply and Demand.

Unit 2: Supply, Demand, and Consumer Choice

Unit 2: Supply, Demand, and Consumer Choice

Chapter 7: Demand & Supply

Demand Major Key Alert.

Factors of Demand.

Demand = the desire to own something and the ability to pay for it

Would You Demand It?.

Demand: Desire, ability, and willingness to buy a product

Presentation transcript:

Do Now! Have you ever bought something that was on-sale? What was it? How much? Would you have bought it at the regular price? How might the answer to Q2 relate to Marginal Utility?

I want this, but do I matter? Demand!!! I want this, but do I matter?

Key Terms Price (P) Quantity Demanded (Qd): The number units demanded at a specific price Law of Demand: P and Qd are inversely related (lower P = more Qd)

Demand Schedule and Demand Curve How much would you spend for a pair of NHL Stanley Cup Finals game 7 tickets? (assuming the Sharks were in the Finals?)  How about the 2nd pair? 3rd?

Demand Schedule and Demand Curve Demand Schedule: Numerical depiction of all quantities demanded at each price. Demand Curve: Graph (line) of all Quantities Demanded at each Price.

Sample Demand Curve As P changes, we move along the curve

Why D is Downward? Diminishing Marginal Utility we get less utility with each additional good = will pay less… Income effect: Lower prices = can afford more Substitution effect: People switch to cheaper goods

Demand = Marginal Benefit Downward sloping due largely to L.D.M.U. (and Income/Sub effect) Demand shows price willing and able to pay at each quantity  Willing to pay up to Marginal Benefit [MB] (or Marginal Utility [MU]) * D = MB

Practice I am selling A’s in this class. How many students do you think are willing and able to buy an A for: - $0? 100? 250? 500? 1000? 2000? - Create a demand schedule - Create a demand curve

DO NOW! Assume the price of coke is locked at $1/can, what might influence whether you buy it or not?

Shifting the Demand Curve! How and why do we shift the Demand Curve?

RIPEN: 5 factors that Shift D Related Goods’ price - Substitutes and Compliments Income (or income taxes) Preferences: ads, seasons… Expectations of Future Price - P up in future means more D now! Number of Buyers

Demand Increase = Shift Right!

Demand Decrease = Shift Left!

Substitutes and Compliments - A similar or competing good - Example: Coffee and Tea - Price up = Demand up! Compliment - A good that goes with another - example: iTunes and iPods - Price up = Demand down

D-curve vs. Qd Changing the price of the good DOES NOT SHIFT the d-curve for that good! changing price DOES change QUANTITY DEMANDED (Qd). * Thus, the D curve shows the Qd at every price (cheaper price = more Qd, but no shift in D curve)