1. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 4.31 LESSON 4.3 Changes in Demand  Identify the determinants of demand, and explain how a change in each will affect the demand curve.  Distinguish between the money price of a good and the time price of a good. Objectives

2. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 4.32 LESSON 4.3 Changes in Demand  tastes  movement along a given demand curve  shift of a demand curve Key Terms

3. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 4.33 Changes That Can Shift the Demand Curve  Changes in consumer income  Normal goods  Inferior goods  Changes in the prices of related goods  Substitutes  Complements  Changes in the size or composition of the population  Changes in consumer expectations  Changes in consumer tastes

4. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 4.34 Movement Along a Demand Curve Versus a Shift of the Curve  A change in price, other things constant, causes a movement along a demand curve, changing the quantity demanded.  A change in one of the determinants of demand other than price causes a shift of a demand curve, changing demand.

5. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 4.35 814202632 Millions of pizzas per week $15 12 9 6 3 0 Price per pizza D An Increase in the Market Demand for Pizza D'D' fb

6. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 4.36 b D A Decrease in the Market Demand for Pizza 814202632 Millions of pizzas per week $15 12 9 6 3 0 Price per pizza j D'D'

7. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 4.37 Extensions of Demand Analysis  Role of time in demand  The cost of waiting in line