1. Warm Up Describe the relationship between consumers and producers.
In a market economy, what determines the WHAT, HOW, and WHO?
What are some products that are in high demand today?
Opinion: What is your favorite candy?

2. Demand Economics Standard 12.12.1
Learning Goal: I will understand how demand effects the market by analyzing the demand curve.

3. Shopping

4. I. Demand (what you want to buy)
The desire to purchase a particular item at a specified price & time, accompanied by the ability and willingness to pay

5. Grocery Shopping

6. II. Demand Schedule
A. A chart that shows the number of items bought at a particular price

7. Demand Schedule

8. III. Demand Curve
A line on the graph that shows the amount of a product that will be purchased at each price
Vertical “Y” Axis = price
Horizontal “X” Axis = quantity
The curve has a negative slope

9. Demand Curve

10. IV. Law of Demand
As the price of an item increases in the market the quantity demanded will go down (and vice-versa)
As the price in a market decrease, people tend to…
purchase the product
buy larger quantities
Avoid substitute products

11. V. Marginal Utility
usefulness a consumer gets from each additional item purchased
Law of Diminishing Marginal Utility: each additional item purchased is less useful than the previous

12. Diminishing Marginal Utility