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Published byMargarita Madden Modified over 10 years ago
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Homework: None FrontPage: Do you think you can have an effect on the price of something?
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or… Capitalists do it with an invisible hand… Chapter 2, Section 1
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Or, …Do as I say, not as I don’t say… Chapter 2, Section 2
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Or…It’s Good to Be the King Chapter 2, Section 2
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Or…Going to Your Happy Place Chapter 2, Section 4
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Or…My Pet Rock Died.
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Demand : the desire to have some good or service and the ability to pay for it. It isn’t enough for consumers to desire a good, if they cannot afford it. It isn’t enough for consumers to be able to afford a good, if they don’t really desire it.
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When the price of a good of service falls, consumers buy more of it. (P , then Q D ) As the price of a good or service increases, consumers buy less of it. (P , then Q D ) Quantity demanded and price have an inverse (opposite) relationship.
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http://abcnews.go.com/Nightline/video/silly-bandz-latest-fad-11686769
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Pirate playoff tickets? Apple iPhone 6? Peters Township homecoming tickets?
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Pirate playoff tickets? Apple iPhone 6? Peters Township homecoming tickets? http://abcnews.go.com/Nightline/video/silly-bandz-latest-fad-11686769
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Homework: None FrontPage: How are demand and price related?
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When the price of a good of service falls, consumers buy more of it. (P , then Q D ) As the price of a good or service increases, consumers buy less of it. (P , then Q D ) Quantity demanded and price have an inverse (opposite) relationship.
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A demand schedule is a table that shows how much of a good or service an individual consumer is willing and able to purchase at each possible price. market A market demand schedule shows how much of a good or service all consumers are willing and able to buy at each possible price.
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Price per DVD ($) Quantity Demanded 300 251 202 153 104 57
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Price per DVD ($) Quantity Demanded 3050 2575 20100 15125 10175 5300
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A demand curve is a graph that shows how much of a good or service an individual consumer is willing and able to buy at each price. A market demand curve is a graph that shows how much of a good or service all consumers in a market are willing and able to buy at each price.
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Price per DVD (in dollars) 5 15 20 25 30 10 1234567 Quantity Demanded of DVDs
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Price per DVD (in dollars) 5 15 20 25 30 10 50100150200250300 Quantity Demanded of DVDs
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The Law of Diminishing Marginal Utility – the benefit from using each additional unit of a good or service during a given time period tends to decline as each is used.
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