This man is a millionaire – his income is £500,000 a year. Would it make any difference to him wanting to buy a new Rolls Royce if his salary increased.

Slides:

Advertisements

Similar presentations

$100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200.

Advertisements

$100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500.

Reviewing Linear Equations. Write the slope and y-intercept for each equation. y = -3x + 7 y = 6x – 5 y = x – 1/2 y = -3/4 x.

Understanding Consumer Demand

$100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300.

4 CHAPTER Elasticity.

Pricing Products and Services

THE ELASTICITY OF LOVE. THE ELASTICITY OF LOVE.

A Microeconomics Topic

Chapter 18 Pricing Policies McGraw-Hill/Irwin

Monopoly Pricing By Kevin Hinde.

3.3 HOW MARKET FORCES AFFECT SUPPLY AND DEMAND AGRICULTURAL AND HORTICULTURAL SCIENCE.

4 Elasticity Notes and teaching tips: 9, 27, 42, 43, 49, and 63.

Sports & Entertainment Marketing Pricing. Welcome to: The Price is Right!

Chapter 12, Section 1. Used to think the economy would automatically correct itself Great Depression World War II Must find a way to monitor the.

M. Jamshed Khan, Dept of Economics, Edwardes College Peshawar 1.

High Frequency Words Words 1-100

AP Microeconomics Accounting Profits vs. Economic Profits Daily: What will I sacrifice if I quit my job to open a scrapbook store? What is the risk?

P R I C E S Changes in Market Equilibrium Chapter 6 Section 2.

HL MARKETING THEORY ELASTICITY

Kyle bought a bike from his friend. His friend gave him a 20% discount. He paid $40 for it. How much was the original price of the bike?

Price Elasticity What is it all about ?. Situation 1 You have $15 to spend You must spend all your money In my “Econ goodies” shop the prices for my goods.

Income Elasticity of Demand and Cross Price Elasticity of Demand

Pricing and Sales Promotion A Wrap Up MAR 331. Pricing and Sales Promotion A Wrap Up Marketing and Pricing –Price/Value Relationships –Role of the Distribution.

Income Elasticity of Demand and Cross Price Elasticity of Demand

PED measures how sensitive the quantity demanded is to changes in the price. You would expect the demand for most goods to fall as the price increases,

ADVERTISE THIS! Our Product Name: Price: Where to buy it: How to use it and good points:

1st 100 sight words.

Presentation Pro © 2001 by Prentice Hall, Inc. Economics: Principles in Action C H A P T E R 5 Supply.

Chapter 4SectionMain Menu Understanding Demand What is the law of demand? How do the substitution effect and income effect influence decisions? What is.

IB Business and Management

We are going to have a quiz over demand next class so let’s review. GET A WHITEBOARD AND A DRY ERASE MAKER SO WE CAN PRACTICE.

Chapter 4SectionMain Menu Understanding Demand Objective: What is the law of demand? How do the substitution effect and income effect influence decisions?

Understanding Demand (Ch.4-1) What is the law of demand? How do the substitution effect and income effect influence decisions? What is a demand schedule?

+ Demand Chapter 4 What is Elasticity of Demand? Section 3.

Revision Elasticity & it’s importance. What is Price elasticity? The responsiveness of one variable to changes in another When price rises what happens.

Simple Economics. Do you like to earn money, save money or spend money? If you said that you like spending money, then you are contributing to our country’s.

Economics Unit Three Part I: Demand. Demand Essentially, demand is the willingness (or desire) to buy a good or service and the ability to pay for it.

Warm Up Turn to page 25 in your textbook Read “Consumer Action” What can Yolanda do to help her business be more profitable? How will she know if her price.

Supply & Demand. Market Economy In a market economy goods and services are made available through supply and demand Consumers decide what is supplied.

Elasticity. Price elasticity of demand Measures the responsiveness to a change in price; that is, will the quantity demanded change if the price of the.

9/17/15 Topic: Elasticity of Demand EQ: What is elasticity, and why are some goods more elastic than others? Bellwork: Set up your Cornell notes. Then,

Ch. 4.2 Notes: Factors Affecting Demand. I. 2 Graphs explaining why we buy more….. A. Change in Quantity Demand = price down we buy more 1. Why? a. Income.

Chapter 4: Demand Section 3. Copyright © Pearson Education, Inc.Slide 2 Chapter 4, Section 3 Objectives 1.Explain how to calculate elasticity of demand.

Elasticity of Demand A2 Business Studies Unit 4 - Marketing.

DEMAND Whatcha Whatch Whatcha Whatcha Want! (and are able to buy)

Product Life Cycle Introduction GrowthMaturity Decline Product introduced into the market. Product is enjoying success. Much of the target market knows.

Chapter 4: Demand Opener. Copyright © Pearson Education, Inc.Slide 2 Chapter 4, Opener Essential Question How do we decide what to buy.

First Grade Sight Words. the of and a an to.

Copyright 2004 – Biz/ed The Market Mechanism VCE Business.

ELASTICITY OF DEMAND Elasticity of Demand – describes how consumers will react to a change in the price of a good. Their reaction depends on the original.

HL1 ECONOMICS MICROECONOMICS

Intro to Business Supply, Demand and Price Target: I can describe how costs and revenues affect profit and supply.

Price  Price changes always affect the quantity demanded because people buy less of a good when it goes up in price.

Do the vocab on the assignment in google classroom.

124 Price Elasticity of Demand AS Edexcel New Specification 2015 Business By Mrs Hilton for.

Get More Customers And Increase Profits A Presentation For.

Chapter 4 DEMAND. What is Demand?  - The desire for an item and the ability to pay for it  Law of Demand:  - When price of good or service goes up,

ECO 365 Week 1 DQ 1 What is the definition of price elasticity of demand? What is the relationship between price elasticity of demand and total revenue?

Income Elasticity of Demand (YED)

Economics Chapter 4 Review.

Economics Chapter 4 Review.

Elasticity & it’s importance

Topic 3: Demand, Supply, and Prices

Demand Prices within our economy are set by supply and demand.

Presentation transcript:

This man is a millionaire – his income is £500,000 a year. Would it make any difference to him wanting to buy a new Rolls Royce if his salary increased to £600,000 a year?

This is a newly qualified doctor – she earns £23,000 a year Will it affect her demanding / affording a new car when she Earns £40,000 a year after 4 years?

Elasticity of income This is the relationship of a change in our incomes to wanting more or different products or services

Last Marketing topic of AS Marketing Elasticity of demand – Unit 9 in Marcouse textbook We going to find out: What is it? How do you measure it? Why is it important?

Elasticity of demand A way of measuring how a customers demand for products or services is affected by change in price / advertising expenditure or consumer incomes

Elasticity of demand This is the formula – you have to learn it for the exam! % change in demand % change in price

Elasticity of demand Example 1.Price of Mars Bar changes from 30p to 33p 2.Demand for Mars Bars falls from 1000 to What is the elasticity of demand?

Elasticity of demand Work this one out 1.Price of VW Golf cut from £1000 to £ Demand for VW Golf increases from weekly sales of 50 to 75 3.What is the elasticity of demand here?

Decision Making – hunch or scientific? You have to decide whether you should increase your prices in order to make more profit What thoughts should go through your mind?

Hunch approach What in my experience, or using my gut reaction will happen to demand from my customers?

Scientific approach Lets do some primary market research would you still buy this product, or as much of it if the price increased ?