1. Demand ES: Make decisions after reflection and review

2. Where do prices come from?  In a market economy prices are set by DEMAND and SUPPLY. These are determined by two groups:  Consumers: the people who BUY goods and services  Producers – the people that provide goods and services

3. Demand – HW Review Demand: The amount of a good or service that people are willing and able to buy at various prices during a given time period.  Amount:  Willing to buy:  Able to buy  Price:

4. Demand Schedule: The list of the quantities of a good that one person will buy at various prices. Tyler’s Taco Demand Schedule PriceQuantity.5011.5011 1.00 9 1.50 7 2.00 5 2.50 3 3.00 1  Tyler’s Taco Demand Curve Quantity Price

5. Demand Curve: The relationship between the PRICE of a good and the QUANTITY buyers are willing and able to buy

6. Demand Shifters in the Market  Income – recession will decrease demand  The number of consumers – seasonal  Consumers tastes and preferences – they change. Example: Sushi  The price of substitute goods – burritos v. tacos

7. Law of Demand: As PRICE increases, QUANTITY demanded decreases – and vice versa.