1. Learning Objective: Agenda:
Today I will be able to identify what changes demand by writing a summary about how I have contributed to demand.
Agenda:
Finish Worksheet (Elasticity of Demand)
Learning Objective
Lecture: Ch. 4.3 Changes in Demand
Vocabulary
Quiz—Review Quiz
Exit Slip

2. CONTEMPORARY ECONOMICS: LESSON 4.3
Title Notes: Ch. 4.3 Changes in Demand
Determinants of Demand Curve (Shifts the Curve):
Consumer income
The prices of related goods
Number & Composition of consumer goods
Consumer Expectations
Consumer Tastes
CONTEMPORARY ECONOMICS: LESSON 4.3

3. 2. The prices of related goods
Increase of demand= rightward shift
Consumers more willing & able
1. Changes in consumer income
Normal goods: Consumption as income
Inferior goods: consumption as income
Less quality goods
Ex. Frozen food, used car, used clothes, etc.
2. The prices of related goods
Substitutes
Or of prices of substitutes shifts curve.
Ex. Costco Pizza—Caeser’s Pizza
Ex. Pizza--Tacos
Complements
or of price of complements shifts curve with it.
Ex. Pizza & Soda—Chips & Salsa

4. Check for Understanding
Consumption of Normal Goods increases when……..
What are inferior goods?
Inferior goods are purchased when…….
What is a substitute for Wing Stop?
Perfect or imperfect substitute?
What are two products that complement each other?
CONTEMPORARY ECONOMICS: LESSON 4.3

5. CONTEMPORARY ECONOMICS: LESSON 4.3
3. Changes in the size or composition of the population
Size= population
If pop. grows the # of consumers will increase.
Composition= age group (specific group)
Ex. Baby boomers demanded more baby car seats & baby food---- and more schools.
CONTEMPORARY ECONOMICS: LESSON 4.3

6. 4. Changes in consumer expectations
Future Income
Ex. Work bonus, you spend more now because you expect more money later.
Future price
Ex. If Price for houses is expected to increase, then consumers will buy now (will shift the demand curve)
5. Changes in consumer tastes
Likes & Interests:
food, music, clothing, reading, movies, TV shows – indeed, all consumer choices – are influenced by consumer tastes.
After economists have ruled other determinants, they attribute shift of curve to consumer tastes.

7. Check for Understanding
If composition OR population shows what will happen to the demand curve????
What are TWO expectations consumers have that shift the demand curve????
What are consumers tastes?
CONTEMPORARY ECONOMICS: LESSON 4.3

8. CONTEMPORARY ECONOMICS: LESSON 4.3
Movement Along a Demand Curve VS. Shift of the Demand Curve
Causes of Movement along D curve:
A change in price,
other things constant
Changingquantity demanded.
Causes of Shift of D Curve:
A change in one of the determinants, other than price
Changingdemand.
CONTEMPORARY ECONOMICS: LESSON 4.3

9. Checking for Understanding
What are 5 determinants of demand, and how do changes in each shift the demand curve?
The 5 determinants are
Consumer income – a rise in income causes an outward (increase) shift of the DC
The price of related goods – a rise in this causes an outward (increase) shift of the DC
Number of consumers in the market – a rise in this causes an outward (increase) shift of the DC
Consumer expectations - a rise in this causes an inward (decrease) shift of the DC
Consumer tastes - a rise in this causes an inward (decrease) shift of the DC
CONTEMPORARY ECONOMICS: LESSON 3.3

10. Check for Understanding
Curve moves along the demand curve when…….
Changing…….
Curve shifts the demand curve when…..
Changing……
CONTEMPORARY ECONOMICS: LESSON 4.3

11. Extensions of Demand Analysis
Extensions of Demand Analysis
Role of time in demand
The cost of consumption has two components:
the money price of the good and (price of good)
the time price of the good (value of a good that works faster & more convenient)
The cost of waiting in line
The opportunity cost is not doing something else.
CONTEMPORARY ECONOMICS: LESSON 4.3

12. Checkpoint: pg.123  Money price is how much a good costs.
What’s the difference between the money price of the good and its time price?
Money price is how much a good costs.
Time price is the monetary value you place on having a good that works faster or is more convenient.
CONTEMPORARY ECONOMICS: LESSON 3.3

13. CONTEMPORARY ECONOMICS: LESSON 4.3
Vocabulary
Work on vocabulary INDEPENDENTLY!
NO TALKING
Headphones allowed
Ch. 4 Vocabulary
Ch. 5 Vocabulary
CONTEMPORARY ECONOMICS: LESSON 4.3

14. CONTEMPORARY ECONOMICS: LESSON 4.3
Quiz
CONTEMPORARY ECONOMICS: LESSON 4.3

15. CONTEMPORARY ECONOMICS: LESSON 4.3
Exit Slip
In what ways do you think you have contributed to the shift of the Demand Curve?
CONTEMPORARY ECONOMICS: LESSON 4.3