Warm Up: What does it mean to DEMAND Pringles? Microeconomics Warm Up: What does it mean to DEMAND Pringles?

Draw & Complete the table with your group mates for Pringles Demand then Graph. Price Q.D. #1 (name) Q.D. #2 Q.D. #3 Q.D. #4 (put in an extra column to fill in later) $2 $1 $.75 $.50 $.25 How many would you demand at each price?

SETTING UP YOUR GRAPH Price Quantity DEMAND $2 $1 $.75 $.50 $.25 Quantity DEMAND Connect dots and label each line

Demand Schedule & Curve Demand Schedule: the listing, or chart, showing the quantity demanded at all possible prices in the market. Demand Curve: the graph showing the quantity demanded at every price in the market

Understanding Demand After you graph: What do you think the Law of Demand states? LAW OF DEMAND- As the PRICE of an item goes UP the QUANTITY DEMAND goes DOWN or if the PRICE goes DOWN the QUANTITY DEMAND will go UP.

Understanding Demand Look at the graph What type of relationship does price have to quantity demand? Demand has a INVERSE, INDIRECT, or OPPOSITE relationship.

Do your curves and schedules follow the law of demand? Explain. Understanding Demand Do your curves and schedules follow the law of demand? Explain. What always goes on the X axis? What always goes on the Y axis?

Then figure out the Market Demand Schedule for your group. Look up and define this in your notebook – HIGHLIGHT what you think is important! Then figure out the Market Demand Schedule for your group. MARKET DEMAND- is the TOTAL quantity demanded for All consumer at each and every price.

Recopy Chart in Notebook Price Sally’s Q.D. for lattes Timmy’s Q.D. lattes Caleb’s Q.D. lattes $5 1 3 4 5 2 8 10 7 15

Let’s Graph the Chart Price $5 4 3 2 1 Caleb Timmy Sally 3 6 9 12 15 3 6 9 12 15 Quantity

Why are their demands different? Why might Timmy demand less lattes than Sally? Why might Caleb demand more lattes than both of them?

DEMAND SHIFT RULES RIGHT LEFT When demand for a product INCREASES, the entire curve shifts ______________. When demand for a product DECREASES, the entire curve shifts _______________. RIGHT LEFT