Agenda Bell Ringer CBM 3 Chapters 5 and 6 Preview How much are you willing to pay The Law of Demand and Demand Shifters Activity Demand headlines Exit Ticket Find your own ID: 1002970
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1. Objective: We will create demand schedules and use the information to graph demand curves, and differentiate between events that cause shifts and movement along the curve.AgendaBell Ringer: CBM #3 (Chapters 5 and 6)Preview – How much are you willing to pay?The Law of Demand and Demand ShiftersActivity – Demand headlinesExit Ticket – Find your own!
2. The Law of DemandHow Consumers Make ChoicesEconomics Chapter 5Supply and Demand
3. Classroom Demand CurvePrice ($)# of Students Willing to Pay10987654321
4. Classroom Demand CurveNow answer the following questions on your handout: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?
5. How Do Demand and Price Interact?Demand: what people are willing and able to pay at various pricesDemand Schedule: table that shows quantity demanded at a specific priceDemand Curve: the result of graphing the data of a demand schedule
6. The Law of DemandAs the price increases, the quantity demanded for a good or service does what?It Decreases!What happens as price declines?The Quantity demanded Increases!
7. Law of Demand ContinuedLaw of diminishing marginal utility: the more you have consumed, the less satisfied you areThe income effect: since income is limited, the more the price rises , the less you are able to consumeThe substitution effect: if 2 goods satisfy the same want people will consume the cheaper of the two
8. Shifting Demand CurvesMovement along the demand curve shows how the quantity demanded changes as the price changesPriceQuantityD
9. Shifting Demand CurvesWhat causes the curve to shift to a new position on the graph?
10. What Causes Demand to Change?Factors other than price can cause the demand curve to shift (Demand Shifters)Changes in consumer incomeThe number of consumersConsumer tastes and preferencesConsumer expectationsThe price of substitute goodsThe price of complementary goodsRemember: a change in Price is NOT a demand shifter!
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12. Analyzing Demand HeadlinesPick a partnerRead instructions on handoutBe prepared to draw your curve on the board and explain which demand shifter might explain your curve.
13. Video Clip OptionsMr. Clifford!https://www.youtube.com/watch?v=LwLh6ax0zTEFederal Reserve Bankhttps://www.youtube.com/watch?v=LqOzRAVOV9o
14. Exit TicketFind a Newspaper or Internet Headline that will shift the demand curve for a commonly used good or service.Draw a demand curve that reflects how the headline might shift the demand curve for the good or service.Explain what factor(s) affect the curve and why.
15. Recap:Objective: We will create demand schedules and use the information to graph demand curves, and differentiate between events that cause shifts and movement along the curve.Return Unit Tests
16. PriceQuantity DemandedDemand Curve (original)