notes Demand activity Graphing demand Objective Students will identify the law of demand and how to graph a demand curve by completing a worksheet Normal versus inferior goods Normal good When income goes up the quantity demanded increases with income ID: 934598
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Slide1
Agenda
Bellringer
Types of Goods
notes
Demand activity
Graphing demand
Slide2Objective
Students will identify the law of demand and how to graph a demand curve by completing a worksheet
Slide3Normal versus inferior goods
Slide4Normal good
: When income goes up the quantity demanded increases with income;
Inferior good
: When income goes down the quantity demanded decreases with income;
Slide5Normal good Examples:
New clothes
New car
Movie theater tickets
Meals at a nice restaurant
Caribbean vacations
NFL football games
Starbucks
**When things are good, what do you splurge on?**
Slide6Inferior good Examples:
DVD rentals
Used clothes
Used cars
Public transportation
McDonalds
Coffee at home
**When times are tough, what do you cut back on?**
Slide7Public Transportation (bus)
Luxury cars or new cars (purchased)
As income goes up, more people buy new cars or luxury cars…..
As income decreases, more people use public transportation
Slide8Ramen noodles
Dinner at Number 5
As income goes up, more people go out to eat at nice places…..
As income decreases, more people eat Ramen noodles
Slide9Substitute goods
: an increase in the price of one product leads to an increase in the quantity demanded of a cheaper, similar product
Complementary goods
: A decrease in the price of one leads to an increase in the quantity demanded of the other.
Slide10substitute good Examples:
Tea (for coffee)
Ford (for Toyota)
Gap (for Abercrombie)
Skippy peanut butter (instead of Jiff)
Underarmour
(
Northface
)
Pepsi (coke)
**This is why companies offer coupons/sale prices!! Increase demand over competition!**
Slide11Complementary good Examples:
Hot dogs and buns
Pencils and erasers
DVD players and DVDS
Toothbrushes and toothpaste
Printers and toner cartridges
**One is not good without the other. If there’s a sale on hot dogs, people will automatically demand buns**