Explain the law of demand and how a demand schedule is represented in a demand curve Understand the difference between and individual and a market demand curve Law of Demand Key Terms Demand ID: 1029157
Download Presentation The PPT/PDF document "The Law of Demand Objectives" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
1. The Law of DemandObjectivesExplain the law of demand and how a demand schedule is represented in a demand curve. Understand the difference between and individual and a market demand curve.
2. Law of DemandKey TermsDemandQuantity demandedLaw of demandDemand scheduleDemand curveIndividual demand curveMarket demand curve
3. How many coffees would you buy in a week if your coffee at Starbucks cost $8?
4. Law of DemandDemandRelationship between price and quantity demanded for a good or service, when other variables are held constant.The buying side in a marketQuantity demandedThe amount of goods and services purchased at a given price.
5. Law of DemandLaw of demandThere is an inverse relationship between the price of a good or service and the quantity buyers purchaseGuided by self interestDemand scheduleA table that lists the quantity of a good or service consumers purchase at various possible prices
6. Bob’s Demand Schedule for DVDsPointPrice per DVDQuantity Demanded per YearA$204B$158C$1012D$516Demand schedule: A table that lists the quantity of a good or service consumers purchase at various possible prices
7. Law of DemandDemand CurveFormed by the line connecting points that represent possible combinations of price and quantity purchased by consumersA summary of buying intentions
8. Bob’s Demand Curve for DVDs
9. Market DemandIndividual demand curve (D1)The demand for a single consumerMarket demand curve (Dtotal)Sum of all the individual demand curves in a market
10. Market Demand Schedule for DVDsPrice per DVDQuantity Demanded(Bob)Quantity Demanded (Mary)Total Demand$20213$15336$10459$55712
11. Market Demand Curve for DVDs
12. Think/Pair/ShareCreate an individual demand schedule (weekly) for each of the following goods at the provided price increments:School Lunch $2, $4, $6, $8Bottled Water $1, $3, $5, $7DVD/BluRay $5, $10, $15, $20With a partner combine your individual demand to create a market demand schedule for each product.**Remember to hold all other variables constant**
13. ReviewTrue or False: The concept of demand is based on the responses of sellers to price changesFalse
14. ReviewTrue or False: A market demand curve is the sum of all the individual demand curves in a marketTrue
15. ReviewThe law of demand states there is an ___________ relationship between the price of a good or service and the quantity buyers purchase. Inverse
16. ReviewQuantity demanded is the __________ of goods and services purchased at a given price.Amount
17. HOMEWORKDemand Homework #1Plot and label the demand curveFill in the blanks, or choose the appropriate answer provided