1. Think of 3 things in your life that you have either bought or were given to you that you wanted more then anything. (this could be recent or from back when you were a kid) Write those things down.
Why did you want those things so bad? If you were given the option to have them today would you still want?
Bell Work

2. DEMAND!!!!

3. Demand The desire to own something and the ability to pay for it.
Shows the quantity demanded at every possible price

4. Is this a demand?

5. Law of demand
When a good’s price is lower, consumers will buy more of it. When the price is higher, consumers will buy less of it.

6. Law of demand When price increases, the quantity demanded decreases
When price decreases, the quantity demanded increases.

7. How do we measure demand?

8. Demand Schedule
A table that lists the quantity of a good people will buy at each different price.

10. Demand Curve A graphic representation of a demand schedule
It shows the quantity demanded at different prices
For example….

12. What can change the quantity demanded?

13. If the price of the actual good or service changes!
Obviously, if the price of the good increases, then the quantity demanded will decrease (law of demand).

14. Substitution Effect
When the price of a good or service goes up, the consumer reacts by buying another form of that good or service

15. If price goes up in…

16. You may purchase the cheaper alternative…

17. The Income Effect
What does this mean?
The change in consumption resulting from a change in income
If the prices for goods go up, your income may prevent you from buying a certain good *