Economics Unit 4, Lesson 1 What is Demand? ©2012, TESCCC.

Slides:

Advertisements

Similar presentations

Change in QD or Change in D

Advertisements

Economics Chapter 4 Section 1.

Unit#2 NAME EconomicsDate/ Period Vocabulary Activity #1 Unit #2 1.Law of Demand-an increase in a goods price causes a decrease in quantity demanded 2.Purchasing.

C4S1: Demand Main Idea: –Demand is a willingness to buy a product at a particular price.

Chapter 7 Supply & Demand

“Supply, Demand, and Market Equilibrium”

Demand and law of Demand SARBJEET KAUR Lecturer in Economics.

CHAPTER 3, SECTION 1- THE NATURE OF DEMAND

Chapter 4: DEMAND.

Demand Economics – Chapter 3. Demand  The amount of a good or service that a consumer is willing and able to buy at various possible prices during a.

The law of demand What is the law of demand? How do income and the law of diminishing marginal utility apply to demand? What’s the difference between the.

Supply and Demand.

This saying will be used for 4 different definitions. All you will have to do is fill in the blanks!! THE AMOUNT OF A GOOD OR SERVICE THAT ___1____ ARE.

+ Demand Chapter 4 Sections 1 & 2 What is Demand? What Factors Affect Demand?

Principles & Practices

Unit 2: Supply, Demand, and Consumer Choice Length: 3 Weeks 1.

Or…My Pet Rock Died.. Demand : the desire to have some good or service and the ability to pay for it. It isn’t enough for consumers to desire a good,

The Nature of Demand 3.1 Demand—The amount of a good or service that that a consumer is willing and able to buy at various possible prices during a given.

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.

Econ Unit 3 Demand.

Unit 4: Supply & Demand DEMAND Chapter 4. Demand: the desire, ability and willingness to buy a product.

The Law of Demand. The quantity demanded for an economic product varies inversely with its price. – Therefore, the higher the price, the less the quantity.

Markets Markets – exchanges between buyers and sellers. Supply – questions faced by sellers in those exchanges are related to how much to sell and at.

Chapter 4:Demand What is Demand? Factors affecting Demand Elasticity of Demand What is Demand? Factors affecting Demand Elasticity of Demand.

Demand Mr. Nunn. Demand The willingness and ability of buyers to purchase different quantities of a good at different prices during a specific time period.

Chapter 20.1 What is Demand?. An Introduction to Demand In the U.S., the forces of supply and demand work together to set prices. Demand is the desire,

Eco 7/1 Demand. The Marketplace In a market economy, consumers influence price of all goods and services. People decide what to buy and at what price-

Demand. What Is Demand? Demand – the desire, ability, and willingness to buy a product Microeconomics – the area of economics that deals with behavior.

I. Demand. A. Demand Defined 1.What is Demand Demand is the different quantities of goods that consumers are willing and able to buy at different prices.

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

“The Law of Demand” 7-1 Notes Demand: How many goods and services consumers will buy at various prices Effected by –Willingness to buy –Ability to buy.

© SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 3.4  12.1 Students understand common terms & concepts and economics reasoning. Standard Address 1  Explain.

“Supply, Demand, and Market Equilibrium” MKT-AFMR-5 Analyze economics in the fashion industry.

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.

Chapter 4 Demand. Key terms  Page 91  Define all 9 key terms using Cornell style notes to present terms and definitions.  Vocab quiz will be _____________.

Supply and Demand.  Voluntary exchange, agreeing on terms  Demand in economics, the different amounts we will purchase at various prices.  Market 

 I can DEFINE supply and demand and understand how, together, they determine MARKET PRICES.

Factors the Affect Demand Unit 4.2. More About the Demand Curve Law of Diminishing Marginal Utility – The second item will not give as much satisfaction.

CHAPTER 4 DEMAND. Section 1: What Is Demand? Main Idea: Demand is a willingness to buy a product at a particular price. Objectives: Describe and illustrate.

Supply & Demand #1: What is Demand?. Journal What is the relationship between Rational Self-Interest Theory and Demand? –Copy AND answer –Use your resources.

DEMAND. What is demand? Demand effects everything from ‘A’ Apples.

Unit 2 – Understanding Markets CHAPTERS 4, 5, 6, & 7.

What is demand? More than just want of a good or service. Must have: Desire to buy Ability, capacity to buy Willingness to buy product It is a mix of what.

SUPPLY AND DEMAND CH 4 SEC 2 CH 5 SEC 1 CH 6 SEC 2.

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.

Demand Chapter 4. What is Demand? Demand- the desire, ability, and willingness to buy a product. Microeconomics- the area of economics that deals with.

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

Warm-up A student opens a school lunch account with an opening balance of $50. Lunch costs $2 per day, and the student charges lunch to his account each.

 A market is an institution or mechanism which brings together buyers and sellers of particular goods and services. ◦ May be local, national, or international.

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.

Supply and Demand.

The Heart & Soul of Market Economics

Warm Up Describe the relationship between consumers and producers.

Chapter 4.1 What Is Demand?.

Demand A consumer is said to constitute demand for a product or a commodity if he/she has the ‘willingness’ (i.e. desire) as well as the ‘ability’ (purchasing.

What is Demand? Chapter 4 Section 1.

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.

Chapter 4- Microeconomics

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.

Bell Work Get out your notebook.

Demand Section 1 – Nature of Demand

ECONOMICS: September 19 Introductory Unit Video: Types of Markets

Demand and Supply Chapters 4, 5 and 6.

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

Shifts in Demand Unit 2.

Chapter 7: Demand & Supply

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

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

Presentation transcript:

Economics Unit 4, Lesson 1 What is Demand? ©2012, TESCCC

Objectives Know the definition of demand. Explain the three conditions for demand. Describe and construct a demand schedule. Construct a demand curve. Explain the law of demand. List and explain the three concepts that explain the law of demand. ©2012, TESCCC

DEMAND – Definition Amount of goods and services a consumer is willing and able to buy at various prices in a given time period ©2012, TESCCC

Conditions for Demand In this definition, we see there are three conditions for demand. 1. Willingness or desire 2. Ability – Financial means 3. Given time period ©2012, TESCCC

Are you willing to buy a Maserati? Do you want one? ©2012, TESCCC

We mean financial ability. Are you able to buy a Maserati? We mean financial ability. ©2012, TESCCC

Specific Time Period Will you buy a Maserati this year? ©2012, TESCCC

All buyers generally behave the same way, so we can make some generalities. ©2012, TESCCC

OR When price increases . . . When price decreases . . . quantity demanded decreases. OR When price decreases . . . quantity demanded increases. ©2012, TESCCC

This is called the law of demand!!! It shows the inverse relationship between price & quantity demanded. P↑ QD↓ P↓ QD↑ ©2012, TESCCC

Demand Schedule Demand schedule – shows quantity demanded at various prices for one consumer Market Demand schedule – shows quantity demanded by all consumers in the market ©2012, TESCCC

Demand Schedule Price Quantity 0.50 1.00 1.50 2.00 2.50 300 250 200 150 100 ©2012, TESCCC

Demand Curve You see a demand curve slopes downward, from left to right, showing the inverse relationship between price and quantity demanded. ©2012, TESCCC

P .50 300 Q ©2012, TESCCC

P 2.50 2.00 1.50 1.00 D .50 100 150 200 250 300 Q ©2012, TESCCC

Limitations of Demand Curve The demand curve is only accurate for one set of conditions. It only shows changes in price. If anything other than price changes then the demand curve will no longer be valid. ©2012, TESCCC

Concepts That Explain the Law of Demand (why the demand curve slopes downward) ©2012, TESCCC

1. The Income Effect The price of an item goes up or down, and it is as if your income has changed; causing the quantity demanded to change. ©2012, TESCCC

2. Substitution Effect If the price of an item changes, especially if it goes up, a consumer will substitute another item that is cheaper. This causes the quantity demanded to change. ©2012, TESCCC

3. Diminishing Marginal Utility As each additional unit of a good or service is consumed, the satisfaction received from consuming that good decreases. For example, the first hamburger you eat is great but the second is not as satisfying, so you would not be willing to pay as much for it. The third brings even less satisfaction. ©2012, TESCCC