1. UNDERSTANDING DEMAND This section will be one of the easiest to understand. –You live out this section nearly every day. SUMMARY OF SECTION – –This section explains how when you have more you want (Demand) more, and… –How you want (Demand) more when prices drop, and –How your income affect your choices (i.e. I have $5 I buy a value meal. I have $30 I go to Cheddars).

2. UNDERSTANDING DEMAND According to the LAW OF DEMAND people buy less of a good when the price rises. Demand schedules & demand curves illustrates how people & markets react to different prices. SUMMARY OF SECTION –this section explains how people increase or decrease their wants and it uses graphs, charts, & tables to illustrate how people increase or decrease their wants.

3. SHIFTS OF THE DEMAND CURVE In this section we will understand the difference between a change in quantity demanded and a SHIFT IN QUANTITY demanded. A Shift involves factors other than price.

4. For example let’s view a demand schedule for a “Snicker’s candy bar. Price of Snicker’s Quantity demanded.5010.757 1.005 1.254 1.502 2.000 Demand Schedule

5. Demand Curve for Snicker’s Bar 0 1 2 4 5 7 10 2.00 1.75 1.50 1.25 1.00 0.75 0.50

6. “BREAKING NEWS REPORT!” A new medical discovery has found that eating one or two Snicker’s candy bar per week can prevent wrinkles in women or reverse the wrinkling process! Price of Snicker’s Quantity demanded 1.0050 1.2545 1.5030 1.7525 2.0020 2.5010 Demand Schedule

7. Demand Curve for Snicker’s Bar 0 10 20 25 30 45 50 2.50 2.00 1.75 1.50 1.25 1.00