Civics and Economics Chapters 20 &21 Amos Demand

Bell Ringer: Complete page 556- Analyzing Charts Questions 1 & 2 in your Bell Ringer notes!

Introduction to Demand Demand- The desire, willingness, and ability to buy a good or service. In DemandOut of Demand

Demand Schedule- A table that list the various quantities of a product or service that someone is willing to buy over a range of possible prices. Demand Schedule- Gas Price $/ galQuantity

Demand Curve- A graph that shows the amount of a product that would be bought at all possible prices in the market.

Practical Exercise Creation of an Individual Demand Schedule 1. Name a product everyone uses. 2. Create a price scale for that particular product (list an extreme price and an exceptionally low price). 3. Ask your partner how many of this certain product they would buy at the prescribed prices (Partners, keep the mentality that you demand this product as long as the price is reasonable). 4. Be prepared to show your scale under the document camera or list on the board.

Price $ Quantity

Law of Demand- Quantity demanded and price move in opposite direction #

Individual vs. Market Demand Market Demand- The total demand of all consumers for their product or service Questions concerning demand in the marketplace: 1. Where is the demand? 2. How do you measure the demand?

Diminishing Marginal Utility What is utility? Pleasure, usefulness, or satisfaction we get from using a product Diminishing Marginal Utility- Principle that our additional satisfaction, or our marginal utility, tends to go down as more and more units are consumed

Factors Affecting Demand Changes in Demand Number of Consumers Consumers’ Income Consumers’ Taste Consumers’ Expectations Substitutes Complements

Elasticity of Demand Demand Elasticity- The extent to which a change in price causes a change in the quantity demanded

Elastic Demand Change in price causes a relatively large percentage change in quantity demanded Examples- Cars, Clothing, Shoes, Jewelry

Inelastic Demand Price changes have little effect on the quantity demanded Examples- Gasoline, Turkeys at Thanksgiving, Electricity, Heat, Medicine

Independent Research Research a best selling product of history. Answer the questions highlighted on page in your book. Focus on why the product sold as well as it did. Create a visual presentation on a poster that highlights these ideas. Present the information to the class.

Nintendo Hula Hoop Model T Ford Mustang Blue Jeans Starbucks Coffee Pizza Delivery (Pick a Chain) McDonald’s Burgers Kentucky Fried Chicken Nike Shoes/ Jordan’s Skateboards Surfboards Bicycle