Micro Lesson 3 Changes in Demand. Grab Your Clickers From the Front Join In! Also: Think about how much bottled water you buy at school.

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Presentation transcript:

Micro Lesson 3 Changes in Demand

Grab Your Clickers From the Front Join In! Also: Think about how much bottled water you buy at school.

In one week’s time, how many bottles of water do you buy from the hallway machines?

Imagine the price was 50% higher per bottle. How many bottles of would you buy in one week?

Imagine the price was 50% lower per bottle. How many bottles of would you buy in one week?

News Item FDA Investigates Claims That Dasani Water Consumption Linked to Alzheimer’s Disease.

Considering the news article you saw, how many bottles of water would you buy in 1 week at current prices?

Imagine the price was 50% higher per bottle. How many bottles of would you buy in one week?

Imagine the price was 50% lower per bottle. How many bottles of would you buy in one week?

Return Your Clickers

Change in Demand - Continued P P QQ DD

Change in Demand when Q demanded changes at all P’s. The Beyonce Rule: When demand decreases, the demand curve shifts to the left. …to the left, to the left.

Change in Demand - Continued Caused by change in: Income Tastes P change in substitute/complement Consumer expectations # of buyers

Marker Board Activity Draw a demand curve Write “Ben & Jerry’s Ice Cream” at the top. Show a price increase. What would happen if: the price of chocolate syrup went up? Blue Bell introduced some new flavors? the price of Breyer’s went up? B&J announced they would be issuing coupons next month. more people lose their jobs.

Demand Shift Quiz

1. The price of ice cream falls. What effect does this have on the market for ice cream? A) Demand curve shifts right. B) Demand curve shifts left. C) Quantity demanded of ice cream increases. D) Quantity demanded of ice cream decreases.

2. The price of ice cream falls. What effect does this have on the market for chocolate syrup? A) Demand curve shifts right. B) Demand curve shifts left. C) Quantity demanded of chocolate syrup increases. D) Quantity demanded of chocolate syrup decreases.

3. The price of chocolate syrup rises. What effect does this have on the market for ice cream? A) The demand for ice cream increases. B) The demand for ice cream decreases. C) The quantity demanded of ice cream increases. D) The quantity demanded of ice cream decreases.

4. Tax rates are lowered for all citizens. What effect will this have on the market for consumer goods? A) Demand decreases. Curve shifts left. B) Demand decreases. Curve shifts right. C) Demand increases. Curve shifts left. D) Demand increases. Curve shifts right.

5. The price of pancake mix goes up. What effect does this have on the market for pancake mix? A) The quantity demanded of pancake mix increases. B) The quantity demanded of pancake mix decreases. C) The demand for pancake mix increases. D) The demand for pancake mix decreases.

6. The price of pancake mix goes up. What effect does this have on the market for syrup? A) The quantity demanded of syrup increases. B) The quantity demanded of syrup decreases. C) The demand for syrup increases. D) The demand for syrup decreases.

7. Georgia Boots have become very popular in the last few years. What happened to the market for Georgia Boots during this time? A) The quantity demanded of GA Boots increased. B) The quantity demanded of GA Boots decreased. C) The demand for GA Boots increased. D) The demand for GA Boots decreased.

8. The price of butter goes up. What will happen to the market for butter? A) The quantity demanded of butter will increase. B) The quantity demanded of butter will decrease. C) The demand for butter will increase. D) The demand for butter will decrease.

9. The price of butter goes down. What will happen to the market for margarine? A) The quantity demanded of margarine will increase. B) The quantity demanded of margarine will decrease. C) The demand for margarine will increase. D) The demand for margarine will decrease.

10. Consumers expect that home prices will fall next year. What will happen to the home market now? A) The quantity demanded of homes will increase. B) The quantity demanded of homes will decrease. C) The demand for homes will increase. D) The demand for homes will decrease.