Period 5 Daily Writing Prompt What is a demand schedule?

Demand Curves Ceteris paribus – “all other things held constant” Price is the only factor that affects demand

Change in Demand Price stays the same, but the entire demand curve shifts Lemonade Stand What happens when there’s a heat wave? What about when it’s cold out?

Normal Goods Goods that consumers demand more of when incomes increase Food, clothes, CDs, movies…other examples?

Inferior Goods Increase in income causes demand to fall Mac n’ Cheese, used cars…other examples?

Other Factors: Population: growing population demands more goods Consumer Tastes – trends & fads Advertising

Price of Related Goods Complements: two goods that are bought and used together. – Peanut butter & Jelly – Ski boots & skis Substitutes: Goods used in place of one another – Snowboards vs. skis – Lemonade vs. Iced tea