Monday, September 8 Announcements Agenda Meet the Teacher is tomorrow from 6:30-8 Please only use YOUR issued textbook, unless you have asked someone if it is OK to borrow Warm-up: study time (10 min) Practice: Ch. 1-3 Test Presentation: Demand Part I Practice: Creating Demand Curves; Demand Scenarios

List the last 3 things you bought (good or service) and how much you paid for them. Write down two things you took into account before making the purchase.

Demand is the desire to own something and the ability to pay for it. Why do we study demand before supply?

A demand curve is a graphic representation of a demand schedule.

Limits of a Demand Curve Demand curves are only accurate for specific market conditions They only take into account price

Behaviors that Affect the Law of Demand Substitution Effect: when consumers react to an increase in a good’s price by consuming less of that good and more of other goods The price of pizza rises, so your order less pizza and more Chinese takeout.

Behaviors that Affect the Law of Demand Income Effect: the change in consumption due to a change in income The price of pizza rises, so you order out less.

Law of Demand?

A demand schedule is a table that lists the quantity of good that a person will purchase at a certain price.

A market demand schedule shows how much consumers in a certain market will buy.