1. Intro - What trendy items have you seen that have come and gone in society? What caused them to arise? What caused them to disappear?

2.  Quantities of a particular good or service that people are willing and able to buy at different possible prices.

3.  Consumers buy more of a good when its price decreases and less of a good when its price increases.

5.  What caused this shift in demand?  Is this reliable if you are starting a business?  How can we better guarantee a successful business?

6. Q o $5 4 3 2 1 Price of Cereal Quantity of Cereal Demand Schedule 10 20 30 40 50 60 70 80 Draw this large in your notes 6 Price Quantity Demanded $510 $420 $330 $250 $180

7. Q o $5 4 3 2 1 Price of Hula Hoops Quantity of Cereal Demand Schedule 10 20 30 40 50 60 70 80 7 Price Quantity Demanded $510 $420 $330 $250 $180 Demand

9. 1. Changes in Income (the income effect) 1. Examples?

10. 2. Prices or availability of substitutes (The substitution effect)  A substitute is a good/service that can be used in place of another.

11.  Prices or availability of complementary goods.  Complimentary goods are things that are often sold or used together.

12.  Changes in the number of buyers.

13.  Changes in preference, tastes, and technology.

14.  Work on Unit 2 Assignments Sheet  Extra credit if complete with portion 1 by Tuesday.