Demand Curve Shifts Understand and explain the 5 determinants of demand shifts Understand the difference between a change in quantity demanded and demand.

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Presentation transcript:

Demand Curve Shifts Understand and explain the 5 determinants of demand shifts Understand the difference between a change in quantity demanded and demand Analyze demand curves to illustrate shifts and what is happening in the marketplace

Change in Quantity Demanded vs Demand Quantity Demanded: A move along the curve…look at your sheet (point to this idea) –Only can be caused by a change in price!!! Demand: Shift in the entire curve…look at your sheet (point to this idea) –People deciding to buy different amounts of the product at the same price

Change in Demand T.I.R.E.S. –Tastes: change of opinion (ads, fashion, trends) –Income: have more or less $ to purchase goods –Related goods: other choices that meet the same needs at different prices –Expectations: future possibilities in the market –Size of market: if more/less people are in the marketplace for a product, demand changes All shifts could occur to the right (increase in demand) or to the left (decrease in demand)

Activity Each group will be assigned a specific demand “shifter” (T.I.R.E.S.) –Take the starting scenario and apply the shift –Create a market scenario that would cause your shift to occur –Graph out and be ready to explain to the class Complete on your sheet (just your shift; you will get the others from different groups)

The Scenario… The next formal dance at Conestoga is upcoming next week…everyone needs flowers! PriceQuantity $300 $251 $203 $156 $1010 $515 Demand Schedule: