This saying will be used for 4 different definitions. All you will have to do is fill in the blanks!! THE AMOUNT OF A GOOD OR SERVICE THAT ___1____ ARE WILLING TO ____2_____AT _____3______ PRICE(S) 1)CONSUMERS OR PRODUCERS 2) BUY OR PRODUCE 3) EACH SPECIFIC (PRICE) OR VARIOUS(PRICES)

AND THAT IS IMPORTANT BECAUSE???? You will have to be able to identify each of those 4 definitions on a graph. – It could be a DIVING LINE, A SOARING LINE, OR JUST A DOT Like this OR THIS

Dot or Line? Demand or supply? REMEMBER THIS???? THE AMOUNT OF A GOOD OR SERVICE THAT ___1__ ARE WILLING AND ABLE TO ____2_____AT ___3__ PRICE(S) 1) CONSUMERS OR PRODUCERS 2) BUY OR PRODUCE 3) EACH SPECIFIC (PRICE) OR VARIOUS(PRICES)

The amount of a good or service that consumers are willing and able to buy at various price s. This is represented by the line.

Quantity Demanded The amount of a good or service that consumers are willing and able to buy at Each Specific price. The Dot on The Graph

Law of Demand Consumers are willing to buy more at lower prices than higher prices. The relationship between price and quantity demanded is INVERSE (opposite). The relationship between price and quantity demanded is INVERSE (opposite).

Things that affect the law of demand: Income effect: When consumers have more money they are willing to buy more. Substitution effect: The tendency of consumers to replace a higher priced products with similar, cheaper products. Example: Why buy a can of Pepsi when the price of a can of Coke is cheaper Law of diminishing marginal utility Law of diminishing marginal utility: As consumers consume more of a product, each additional unit becomes less satisfying. Example: When eating pancakes, is there a point where you get sick of them????

Difference Between Quantity Demanded and Demand Quantity Demanded is the dot on the graph. Demand is the entire line linking all the dots.

Plotting Demand The Dots (10,5) (20,3.75) And (40,2) are Quantities Demanded. (Points) The entire line connects all Quantities Demanded and Represents Demand.

Demand vs. Quantity Demanded Demand or Quantity Demanded Demand or Quantity Demanded? What does it look like? Price (P) Quantity D Price Quantity (Q) D1 P1 Q1 P2 Q2 D2

Demand Schedule for Apples Price per apple Quantity Demanded $420,000 $340,000 $260,000 $180,000