Demand Review Do NOT waste the white board pen! Make sure your Group # is clearly shown on your Dry-Erase Board at all times Tomorrow’s test will NOT be multiple choice. It will be Short-answer and graphing!!!!!

Demand Schedule  Draw a demand schedule at price intervals of every 20 cents beginning at sixty cents and ending at $2.00. For quantity purchased, do intervals of 2 units beginning with zero and ending at 14. Make sure it follows the Law of Demand! Using Half the Dry-Erase Board...

Demand Curve  Using your demand schedule, on the other half of your Dry- Erase Board, draw your demand curve at those intervals.

Marginal Utility  Explain what marginal utility is  Explain what the law of diminishing marginal utility is

Determinants of Demand  List these major determinants of demand  In  Times Past  Really Good (there are two types of related goods)  For each, write down an example and be able to explain it

Determinants of Demand  List these major determinants of demand  White  Beans  Existed  For each, write down an example and be able to explain it

Demand Graph - Decrease  Draw a demand graph showing the appropriate shift if demand decreases. Title in large letters, “ Decrease in Demand ” Using Half the Dry-Erase Board...

Demand Graph - Increase  Draw a demand graph showing the appropriate shift if demand increases. Title in large letters, “ Increase in Demand ” Using The Other Half the Dry-Erase Board...

Elasticity  Explain what we mean when we say that a product ’ s demand is price elastic  Provide an example and explain  Draw a graph that show ’ s a product ’ s demand is price elastic

Inelastic  Explain what we mean when we say that a product ’ s demand is price inelastic  Provide an example and explain  Draw a graph that show ’ s a product ’ s demand is price inelastic

 3 Characteristics of products that would have inelastic demand  3 Characteristics of products that would have elastic demand

Changing Income – Inferior goods  If income goes  Demand goes ? What are Inferior Goods?

 Write the formula that is used to determine Price Elasticity of Demand? Elastic, Inelastic or Unitary

Elastic, Inelastic or Unitary?  % change in price =10  % change in quantity demanded =10

Elastic, Inelastic or Unitary  % change in price = 25  % change in quantity demanded =5

Elastic, Inelastic or Unitary  % change in quantity demanded =20  % change in price= 10

Changing Attitudes  If attitude towards a product declines ( )  Demand will go ?

Changing Price of Substitute Products  If price of butter goes down ( )  The demand for margarine will go ?

Changing Price of Complementary Products  If the price of hamburger patties goes up ( )  The demand for hamburger buns goes ?

 Write the 3 important Components of Demand

Demand Graph  Hold up the graph that red or yellow created that will represent the effect an increase in price of Sprite will have on 7up.