1. Demand & Supply

2. DEMAND & THE LAW OF DEMAND

3. Who Wants One?
When I reveal the "mystery" product, consider how much you are willing and able* to pay for the product.
REMEMBER: *Able to pay means that you have the money with you right now.

4. DEMAND SCHEDULE FOR ___________________
NUMBER OF STUDENTS WILLING & ABLE TO BUY
$1 0 9 8 7 6 5 4 3 2 1
PRICE
Price
# of students willing & able to buy
$10 9 8 7 6 5 4 3 2 1

5. DEMAND DISCUSSION QUESTIONS
Why might some students be willing to pay $10 for this product?
Why might some students choose not to pay even $1 for this product?
You have created a demand curve for the product. What happens to the quantity demanded for this product when the price goes down? When the price goes up?
Most demand curves look similar to the one you created. Given this, what do you think the "law of demand" might say?

6. UNIT 2 KEY TERMS Define the following terms: 7. demand 8. demand curve
9. law of demand
10. substitute good
11. complementary good
Use your textbook to define each terms.

7. CHAPTER 5 READING
Get out your “Unit 2-Chapter —Demand Comprehension Check” handout.
Read page 75 to page 82.
As your read, complete the handout.
KEEP the handout until after the “Demand in the Headlines” partner activity.
You will turn in BOTH handouts AFTER the activity.

8. READING QUICK REVIEW What is demand? The law of demand?
What law says that the more we consume of something, the less satisfaction we get by consuming more of it?
What is a substitute good? Examples?
What is a complimentary good? Examples?
What are the 6 factors that can cause a change in demand?
Which direction does the demand curve move when demand increases? Decreases?

10. DEMAND IN THE HEADLINES
Get into pairs.
In this activity, you will work with your partner to analyze a series of newspaper headlines.
Based on information in each headline, you will investigate what happens to the demand curve for a related product.

11. DEMAND IN THE HEADLINES
Carefully read each. Determine whether the information will:
--shift the entire demand curve to the left or right.
--not shift the demand curve, but change the quantity demanded along the original curve.
Write the headline on Student Handout A.
Then draw what will likely happen to the demand curve.
Finally, explain what happened to the demand curve and why.

12. DEMAND IN THE HEADLINES
Average Wages Decline for Workers Around the Country
How will this information likely affect the demand curve for movie tickets? A
Quantity
Price D1

13. DEMAND IN THE HEADLINESB
1970s Styles Popular with High School and College Students
How will this information likely affect the demand curve for CDs of disco music?
Quantity
Price D1

14. DEMAND IN THE HEADLINES
Fast Food Chain Raises Prices on All Menu Items
How will this information likely affect the demand curve for the chain's burgers? C
Quantity
Price D1

15. DEMAND IN THE HEADLINES
Analysts Predict Video Game Prices to Increase Next Year
How will this information likely affect the current demand curve for video games? D
Quantity
Price D1

16. DEMAND IN THE HEADLINES
Gas Prices Increase 200% Since Last Year How will this information likely affect the demand curve for new sport utility vehicles? E
Quantity
Price D1

17. DEMAND IN THE HEADLINES
Price for Fresh Blueberries Skyrockets–Cold Weather to Blame How will this information likely affect the demand curve for fresh strawberries? F
Quantity
Price D1

18. DEMAND IN THE HEADLINES
Hospitals Report Dramatic Decrease in Births
How will this information likely affect the demand curve for baby strollers? G
Quantity
Price D1

19. DEMAND IN THE HEADLINES
Computer Maker Announces 20% Price Cut
How will this information likely affect the demand curve for the company's laptops? H
Quantity
Price D1

20. SUPPLY & THE LAW OF SUPPLY

21. There’s Never enough to go around…
What are some example in the real world where there is/has been extreme lack of supply?
What impact did this have on the price of the scarce items?

22. SUPPLY SCHEDULE FOR ___________________
NUMBER OF ________ AVAILABLE
$1 0 9 8 7 6 5 4 3 2 1
PRICE
Price
# of the item available
$10 9 8 7 6 5 4 3 2 1

23. SUPPLY DISCUSSION QUESTIONS
Who might be willing and able to pay $10 for this product?
Why might some students not even pay $1 for this?
You have created a supply curve for the product. What happens to the supply demanded for this product when the price goes up? When the price goes down?
Most supply curves look similar to the one you created. Given this, what do you think the "law of supply" might say?

24. Unit 2 KEY TERMS Define the following terms: 12. supply
13. supply curve
14. law of supply
Use your textbook to define each terms.

25. CHAPTER 5 READING
Get out your “Unit 2-Chapter —Supply Comprehension Check” handout.
Read pages 82 to page 87.
As your read, complete the handout.
KEEP the handout until after the “Supply in the Headlines” partner activity.
You will turn in BOTH handouts AFTER the activity.

26. READING QUICK REVIEW What is supply? The law of supply?
What 2 things do economists say causes prices and quantity to move in the same direction in the law of supply and demand?
What are the 6 “supply shifters?”
Which direction does the supply curve move when supply increases? Decreases?
What does a change in price (not supply) cause to happen in a supply curve?

27. SUPPLY SHIFTERS

28. SUPPLY IN THE HEADLINES
Get into pairs.
In this activity, you will work with your partner to analyze a series of newspaper headlines.
Based on information in each headline, you will investigate what happens to the demand curve for a related product.

29. SUPPLY IN THE HEADLINES
Carefully read each. Determine whether the information will:
--shift the entire supply curve to the left or right.
--not shift the supply curve, but change the price along the supply curve.
Write the headline on Student Handout A.
Then draw what will likely happen to the supply curve.
Finally, explain what happened to the supply curve and why.

30. SUPPLY IN THE HEADLINES
Record Peach Harvest—Price Lowest in Decades
How will this information likely affect the supply curve for frozen peach pies? I
Quantity
Price S1

31. SUPPLY IN THE HEADLINES
U.S. Car Company to Close Six Factories
How will this information likely affect the supply curve for company’s minivans? J
Quantity
Price S1

32. SUPPLY IN THE HEADLINES
Shoe Manufacturer Increases Prices on All Styles
How will this information likely affect the supply curve for the company’s sneakers? K
Quantity
Price S1

33. SUPPLY IN THE HEADLINES
Gas Prices to Stay Low This Year—Rise Dramatically Next Year How will this information likely affect the current supply curve for gasoline? L
Quantity
Price S1

34. SUPPLY IN THE HEADLINES
Robots Make Automobile Assembly Faster, Cheaper
How will this information likely affect the supply curve for cars? M
Quantity
Price S1

35. SUPPLY IN THE HEADLINES
Congress Passes New “Sugar Tax”
How will this information likely affect the supply curve for the sugar? N
Quantity
Price S1

36. SUPPLY IN THE HEADLINES
Fire Destroys Thousands of Acres of Forest in Pacific Northwest
How will this information likely affect the supply curve for lumber from Oregon? O
Quantity
Price S1

37. SUPPLY IN THE HEADLINES
President Approves Subsidy for Solar Energy Industry
How will this information likely affect the supply curve for solar energy panels? P
Quantity
Price S1