Shifting Demand. Demand Increases  Demand Curve shifts right Demand Decreases  Curve shifts left.

Slides:

Advertisements

Similar presentations

Change in QD or Change in D

Advertisements

Markets Chapter 3-5. What is a market? markets are places where 1 or more buyers and 1 or more sellers come together ex: swap meet, stock market, grocery.

Change in Quantity Demanded (▲QD) vs. Change in Demand (▲D)

Supply & Demand Unit 1.

How does the price of an item affect the demand?

2.1 Markets Supply Pg 47 Oliver Chang. Determinant of Supply Taxes: increases production costs and reduces supply Subsidies: lowers producers’ costs and.

Turning in Chapter 3 homework  Numbers 4, 8, 10, and 18 Theory in Action report.

How Markets Work A Change in Demand. When a factor that affects the buying plan other than the price of the good changes, there is a change in demand.

SHIFTS IN DEMAND Mr. Barnett University High AP Microeconomics.

 Demand- the desire to own something AND the ability to pay for it.  The Law of Demand PRICE GOES UP DEMAND GOES DOWN AND…. As price goes down, you.

Supply & Demand Analysis Ms. Stack Fall 2008 Economics.

By: KiKi.  Competitive market- a market in which there are many buyers and sellers of the same good or service, none of whom can influence the price.

DEMAND Chapter 20.

Supply and Demand Notes DEMAND Different people place different valuation on the same good. Meaning they will pay different prices for the same good (Love,

Section 1 Understanding Demand

Law of Demand Lecture.

The Foundation of Economics:

Demand Economics – Chapter 3. Demand  The amount of a good or service that a consumer is willing and able to buy at various possible prices during a.

Understanding Demand. What is Demand? Market: any place where people come together to buy and sell goods or services An economic market has two sides:

Economics 100 Lecture 5 Demand and Supply (I). Demand and Supply  Opportunity Cost and Price  Demand.

4.2.  Occasionally something happens to change people’s willingness and ability to buy.  These changes are usually of two types: quantity demanded 

Demand Chapter 3. What is demand? The willingness and ability to purchase a good or service Demand = Willingness and ability to purchase.

Several factors will cause the quantity demanded at every price to change Quantity Price Demanded $4 1 $3 2 $2 3 $ Price Quantity Demanded.

More income results in more demand for new cars; less demand for used cars Less income results in more demand for used cars; less demand for new cars.

Eco 6351 Economics for Managers Chapter 3a. Supply and Demand Prof. Vera Adamchik.

Demand Revisited SSEMI1: Explain how the Law of Demand works to determine production and distribution of goods and services.

What is Market Research? s/consumersurveys/home# s/consumersurveys/home#

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Factors Affecting Demand 21.2

Demand Understanding Demand & The Demand Curve Shifts.

Module Supply and Demand: Introduction and Demand KRUGMAN'S MACROECONOMICS for AP* 5 Margaret Ray and David Anderson.

+ Supply and Demand Why are some goods produced and not others?

Supply and Demand 1. Demand Demand represents the behavior of buyers. A Demand Curve A Demand Curve shows the quantity demanded at different prices. Quantity.

Demand Basics “We Wants What We Wants”. D D Demand will increase (new Demand curve; will shift right)

Chapter 4.  Demand – the desire AND ability to own or purchase  Does not refer to wishes or dreams  Law of Demand – the more it costs, the less you.

UNIT II Markets and Prices. Law of Demand Consumers buy more of a good when its price decreases and less when its price increases.

Demand A Schedule Showing the Consumers are Willing and Able to Purchase At a Specified Set of Prices During A Specified Period of Time Amounts of a Good.

Main Definitions Market: –All situations that link potential buyers and potential sellers are markets. Demand: –A demand schedule shows price and quantity.

Mr. Schoonover 9/29/2009.  What does the demand curve tell us?  What causes demand to change along the demand curve?  What about other factors? What.

Objective—Students will understand the concept of DEMAND AND SUPPLY and the law of demand and law of supply.

Definitions Goods Putting it all together Chapter three To shift or not to shift $100 $200 $300 $400 $500 $ 500$500.

Chapter 20.2 Factors Affecting Demand. Changes in Demand Market demand can change when more consumers enter the market; when incomes, tastes and expectations.

1. What are some things you buy as substitutes, or in place of another product? 2. What are some things you buy more of when you have more money (aka normal.

Test. Define demand (2) ‘the quantity of a good or service that a consumer is willing to and able to buy(1) at a given price in any given time period.’

The Demand Curve Shifts. Price goes up quantity demand decreases, but… when price goes down quantity demanded increases when price goes down quantity.

IT’S THURSDAY…. Identify the following 1.Demand 2.Law of demand 3.Demand schedule 4.Market demand schedule 5.Demand curve 6.Substitution effect 7.Income.

 A market is an institution or mechanism which brings together buyers and sellers of particular goods and services. ◦ May be local, national, or international.

Chapter 4 Section 2 Changes in Demand. Changes in the Quantity Demanded Change in Quantity demanded is a result of a change in Price This causes movement.

Chapter 4: Section 2 The Demand Curve Shifts When Demand Changes, the Curve Shifts Demand can change. It can go up, or it can go down. Economists show.

Demand Revisited SSEMI1: Explain how the Law of Demand works to determine production and distribution of goods and services.

Unit 2: Shifters of Demand

Shifting Supply and Demand

Ceteris Paribus “All other things held constant”

REVIEW 2.3 Demand.

Supply and Demand.

Supply and Demand.

Determinants of Demand

Understanding Demand.

Changes in quantity demanded

SUPPLY AND DEMAND THEORY (Part 2)

© EMC Publishing, LLC.

Drill # 1. What is demand? 2. What two effects cause the law of demand? 3. What is a demand curve?

Demand Chapter 4.

Determinants of Demand

Shifts in Demand Unit 2.

Unit 2: Supply, Demand, and Consumer Choice

Factors that Shift Demand & Supply

Chapter 4 Demand.

Presentation transcript:

Shifting Demand

Demand Increases  Demand Curve shifts right Demand Decreases  Curve shifts left

Demand Curve Shift

Factors for shifts Income Get a raise; get pay cut; get laid off… If you get a raise and buy more of something (xBox games) it is a normal good; If you get a raise and buy less of something (store brand cereal) it is an inferior good If you get a raise but still buy the same amount it is a neutral good (think gasoline; you HAVE to buy it to move your car)

Factors for shifts Preferences Society starts to change what it wants Look at smartphones: iPhone’s don’t control the market anymore

Factors for shifts Prices of Related Goods Substitutes for one product mean if the price of one goes up, demand for the other goes up The cost of a BigMac goes up so more people will go out for a Whopper Complements when price goes UP for one product (tennis rackets) demand for the other thing goes down (tennis balls)

Factors for shifts Number of buyers Population size, birth rate, death rate, war, etc. Future price If the price will be HIGHER later, buy it now! (stocks) If the price will be LOWER later, buy it later! (house)

Demand: Increase or Decrease?

When should I buy?