Homework: None FrontPage: Do you think you can have an effect on the price of something?

or… Capitalists do it with an invisible hand… Chapter 2, Section 1

Or, …Do as I say, not as I don’t say… Chapter 2, Section 2

Or…It’s Good to Be the King Chapter 2, Section 2

Or…Going to Your Happy Place Chapter 2, Section 4

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, if they cannot afford it. It isn’t enough for consumers to be able to afford a good, if they don’t really desire it.

When the price of a good of service falls, consumers buy more of it. (P , then Q D  ) As the price of a good or service increases, consumers buy less of it. (P , then Q D  ) Quantity demanded and price have an inverse (opposite) relationship.

 Pirate playoff tickets?  Apple iPhone 6?  Peters Township homecoming tickets?

 Pirate playoff tickets?  Apple iPhone 6?  Peters Township homecoming tickets?

Homework: None FrontPage: How are demand and price related?

When the price of a good of service falls, consumers buy more of it. (P , then Q D  ) As the price of a good or service increases, consumers buy less of it. (P , then Q D  ) Quantity demanded and price have an inverse (opposite) relationship.

A demand schedule is a table that shows how much of a good or service an individual consumer is willing and able to purchase at each possible price. market A market demand schedule shows how much of a good or service all consumers are willing and able to buy at each possible price.

Price per DVD ($) Quantity Demanded

Price per DVD ($) Quantity Demanded

A demand curve is a graph that shows how much of a good or service an individual consumer is willing and able to buy at each price. A market demand curve is a graph that shows how much of a good or service all consumers in a market are willing and able to buy at each price.

Price per DVD (in dollars) Quantity Demanded of DVDs

Price per DVD (in dollars) Quantity Demanded of DVDs

The Law of Diminishing Marginal Utility – the benefit from using each additional unit of a good or service during a given time period tends to decline as each is used.