Bell Work  Objective: Summarize what cause Demand to shift and the effect on the price and quantity demanded.  Bell Question: What is the law of Demand?

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Presentation transcript:

Bell Work  Objective: Summarize what cause Demand to shift and the effect on the price and quantity demanded.  Bell Question: What is the law of Demand?

$ Q $ Q Shifts in Demand Shift to the right indicates an increase in Demand Shift to the left indicates a decrease in Demand D1 D2 D1 D2

Shift in Demand SEPTIC

Substitutes  Chicken and beef Price of chicken goes up, demand for beef will go up

Expectations (consumers)  Bird flu expected to destroy most of the future chicken population Increased demand for chicken now -Before it disappears

Population (# of buyers)  After WWII – Baby boom  Increase in baby clothes, diapers

Taste and Preferences - What is Popular  IPads  Smart phones/IPhones

Income If one’s income increases the demand for normal items will increase

Complements  PB & J Price of peanut butter goes up, the demand for jelly will go down Ski/ ski boots