1. On a scratch piece of paper…
EVERYONE answer these questions:
You have just received $20 for your birthday. If I was selling Hershey Kisses, how many would (not could) you buy if they cost…
$1.00 each?
$0.50 each?
$0.10 each?

2. Demand

3. Law of Demand
As prices go up… …the quantity demanded goes down As prices go down… …the quantity demanded goes up Inverse relationship! A change in the price results in a change in the quantity demanded!

4. Demand Curve
Illustrates the quantity of products demanded at certain prices
Let’s graph it with our Hershey Kisses!
Almost always curves down and to the right
Why?
When there is a change in the price, how do we find out what happens to the quantity demanded?
Only a change in price can cause a change in the quantity demanded

5. Quick Review
Demand curves almost always slant ___________ & to the _____________
According to the Law of Demand, as prices go up, the quantity demanded goes __________
According to the Law of Demand, as prices go down, the quantity demanded goes _________
What is the only thing that can change the quantity being demanded?
down
right
down up
The price of the product

6. Change in Demand
Change in Demand: When people are wiling to buy different amounts of the product at the same prices
The demand line shifts to the right (increase) or left (decrease)

7. Hershey Kiss Power!
GOOD NEWS! Scientists have just discovered that Hershey Kisses have a special chemical inside of them that helps you be smarter and stronger each time you eat one!
How many Hershey Kisses will you now buy if they are priced at:
$1.00 each
$0.50 each
$0.10 each