Chapter 4 demand

Ch 4 Section 1 What is demand?

vocabulary Demand Microeconomics Demand schedule Demand curve Law of Demand Market demand curve Marginal utility Diminishing marginal utility

Notes What is the relationship between the demand schedule and the demand curve? How is the slope of the demand curve explained by the principle of diminishing marginal utility?

Assignment to turn in List 5 things you bought in the last week and answer these questions for each item Would you have purchased the item if the price were doubled? Would you have tried to find another brand at a lower price? Would you have bought more of the product if the price had been half as much? Why or why not?

Factors affecting demand Ch 4 section 2 Factors affecting demand

vocabulary Change in quantity demanded Income effect Substitution effect Change in demand Substitutes complements

notes What is the difference between change in quantity and change in demand? How does the change in price affect the change in demand for a product’s substitute?

Ch 4 Section 3 Elasticity of demand

Vocabulary Elasticity Demand elasticity Elastic Inelastic Unit elastic

Notes What are the 3 determinants of demand elasticity? Why is the demand for items like medicine inelastic? Why do items that have close substitutes have an elastic demand?

Assignment to turn in List the items in the chart on page 106 and explain why each is elastic or inelastic.