1. Demand learning objectives
12/11/2018
Demand learning objectives
By end of the lesson, you should be able to:
Describe demand
Describe effective demand
Calculate revenue from different demands
Explain what a demand curve is showing

2. Starter https://www.youtube.com/watch?v=RP0j3Lnlazs
12/11/2018
Starter
From 18 Seconds to 4 min 10 Seconds

3. 12/11/2018
Demand
The amount that an individual or individuals are willing to buy at any given price.
For demand to be meaningful, it has to be backed up by the ability to pay. This is called effective demand.
For virtually all products demand increases as price falls and vice versa

4. What is the overall aim of the business?
12/11/2018
What is the overall aim of the business?
The overall aim of the business is to make money by:
Meeting demand through getting them to try your product and continue to use your product/service.
This is called repeat purchase.
How can businesses achieve repeat business?

5. Demand for Mars Bars in a school:
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Demand for Mars Bars in a school:
Price
Quantity Demanded
Revenue
£0.20
400
£0.25
350
£0.30
300
£0.35
250
£0.40
200
£0.45
150
£0.50
100

6. Demand for Mars Bars in a school:
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Demand for Mars Bars in a school:
Price
Quantity Demanded
Revenue
£0.20
400
£80
£0.25
350
£87.50
£0.30
300
£90
£0.35
250
£0.40
200
£0.45
150
£67.50
£0.50
100
£50

7. This is what it looks like on a graph
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This is what it looks like on a graph

8. What does the graph show?
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What does the graph show?
The demand curve is downward sloping because as the price of Mars bars increase, less people are prepared to pay the higher prices, so demand decreases.
This company should therefore think carefully what price to sell their chocolate bars.

9. How much are you prepared to pay for a Mars Bar?
What affects your demand for the product?

10. Factors affecting demand
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Factors affecting demand
3min 14secs
Make notes on the factors affecting demand

11. Factors leading to a change in demand:
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Factors leading to a change in demand:
changes in the prices of substitutes and complementary goods
changes in consumer incomes
fashions, tastes and preferences
advertising and branding
demographics
external shocks
seasonality

12. Homework Cereals demand Q’s This is due on Thursday 8th October – P5
12/11/2018
Homework
Cereals demand Q’s
Answers on lined paper please
This is due on Thursday 8th October – P5