1. DEMAND

2. Essential Question: what factors including myself effect demand.
Law of demand Substitutes
Marginal utility Complements
Diminish marginal utility Elastic Demand
Income effect Inelastic Demand
Substitution effect
Consumer income
Consumer tastes

3. Demand
To add to the demand a person must be willing and able to purchase goods or services.
1 factor that impacts demand is its Price.
Law of Demand
-Price goes up, Demand goes Down
-Price goes down, Demand goes up
Ex. Think Black Friday or Back to school sales

4. Marginal Utility
For the demand for a product or service to exist it needs to have “utility” or be useful.
Different societies deem what is use as a whole or from person to person.
For example.

5. Determinants of Demand- Factors other than price that impact demand
The Income effect:
Based on personal income
The price of a given product or service could change and thus the value of your income has changed.
Ex. The price of movie tickets drop by 5 dollars and thus the demand for movies tickets will go up and vice versa

6. Substitution Effect
When we substitute a given product for another similar product or service because of a rise in price.
Beef becomes to expensive mom buys chicken for Taco Tuesday
Coco Puffs or Coco Roos
Each major store carries their own in house/generic brand.
Western Family brand, Freddy’s,
Like Mom says, “It’s the same thing!”

7. Consumer Income
Different than the Income Effect in that rather than the price changing its an actual person’s income that changes
It could be as simple as a person receiving a raise “The more money you got the more you spend”
Before you might have been willing to add to the demand of a new set of Beats, now you are able to.
What time of the year do people have more money to spend based on an increase of income?

8. Consumer Tastes and preferences
Like all things in life our tastes for certain product and services change over time and thus have an effect on demand.

9. 80’s style

10. Complementary goods
Products and services that complement each other and the demand for one will effect the other.

11. Consumer expectations
The way we think about future purchases based on positive or negative expectations of product or service.
Ex. Sometimes technology becomes obsolete because something new just came out.
What are some examples you can think of?

12. Investing based on demand
What products and services do you think there is a high demand for right now? Do you know of any companies you could invest in that provide those products or service?

13. Demand Schedules and Demand Curves
The demand schedule and demand curve both illustrate the relationship between the “price and only price” of a product or service and the level of demand for it. 

15. Create your own Demand schedules and Curves
On your graph paper create 10 demand schedules and 10 corresponding demand curves for 5 goods or services
Helpful Hints
Prices go on the Y axis
Quantity Demand goes on the X axis
Make Prices and Quantity demanded in even increments

16. How do I drive and impact Demand?
Most of the time we as consumers are aware we are creating the demand for a give product but what about those we are not aware of?
In your notebook please write paragraph response to the following prompt.
Do we have a moral obligation for the consequences of that demand if we are not aware of those consequences?