1. Begin End ShowTable of Contents Supply and Demand (3.2.2) Copyright © 2013 N.S.

2. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Table of Contents Demand Survey “Law of Demand” Targets “Law of Demand” Targets DefinitionChanges in Demand Demand Can Change In Two Ways You Draw the Graph Increases Demand Decreases Demand The Effects of Shifting Demand Access Prior Knowledge Set Goals New Information Activity Conclusion

3. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Demand Survey Circle the product that has been assigned to your group.

4. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Demand Survey Price Range Number Who Would Pay This as the Highest Price (Put Tallies Here) Totals Actual Demand Highest Lowest Prepare Ranges Circle the product that has been assigned to your group.

5. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Price Range Number Who Would Pay This as the Highest Price (Put Tallies Here) Totals Actual Demand Highest Lowest Demand Survey Prepare Ranges Poll Classmates $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 Circle the product that has been assigned to your group.

6. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Price Range Number Who Would Pay This as the Highest Price (Put Tallies Here) Totals Actual Demand Highest Lowest Demand Survey Fill In This Column Prepare Ranges Poll Classmates I I I I I I I $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 Circle the product that has been assigned to your group.

7. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Price Range Number Who Would Pay This as the Highest Price (Put Tallies Here) Totals Actual Demand Highest Lowest Demand Survey Fill In This Column Fill In This Column Prepare Ranges Poll Classmates I I I I I 1 3 2 1 2 1 Circle the product that has been assigned to your group. $6.00 $5.00 $4.00 $3.00 $2.00 $1.00

8. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Price Range Number Who Would Pay This as the Highest Price (Put Tallies Here) Totals Actual Demand Highest Lowest Demand Survey Fill In This Column Fill In This Column Prepare Ranges Poll Classmates Graph the Data I I I I I 1 4 6 7 9 10 132121132121 Circle the product that has been assigned to your group. $6.00 $5.00 $4.00 $3.00 $2.00 $1.00

9. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Demand Survey Price Range $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 Actual Demand 1 4 6 7 9 10 Draw the Graph

10. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Demand Survey Price Range $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 Actual Demand 1 4 6 7 9 10 What relationship does your graph illustrate between “quantity demanded” and price?”

11. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. “Law of Demand” Targets Knowledge 1Describe the relationship between price and quantity demanded. Reasoning 2Determine why demand curves might shift. Skill 2Draw shifts in the demand curve.

12. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Definition If all things are equal, consumers will demand more of a product as its price decreases, and less of a product as its price increases.

13. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Definition 1) Lower prices are an incentive for consumers. If all things are equal, consumers will demand more of a product as its price decreases, and less of a product as its price increases. $89.95

14. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Definition 1) Lower prices are an incentive for consumers. 2) Higher prices for the same item will deter consumers. If all things are equal, consumers will demand more of a product as its price decreases, and less of a product as its price increases. $119.95 $89.95

15. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Demand Can Change in Two Ways 1) Change in “Quantity Demanded”

16. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Demand Can Change in Two Ways 1) Change in “Quantity Demanded” This is just a change along the demand curve.

17. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Demand Can Change in Two Ways 1) Change in “Quantity Demanded” For example, the price for lemonade might change from $2.00 to $1.00 This is just a change along the demand curve.

18. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Demand Can Change in Two Ways 1) Change in “Quantity Demanded” This is just a change along the demand curve. Notice how the blue demand line did not move. Just price changed, so we moved from one “quantity” to another.

19. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Demand Can Change in Two Ways 1) Change in “Quantity Demanded” This is just a change along the demand curve. Notice how the blue demand line did not move. Just price changed, so we moved from one “quantity” to another. 2) Change in “Demand”

20. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Demand Can Change in Two Ways 1) Change in “Quantity Demanded” This is just a change along the demand curve. Notice how the blue demand line did not move. Just price changed, so we moved from one “quantity” to another. 2) Change in “Demand” This is a shift of the entire demand curve either “left” or “right.”

21. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Demand Can Change in Two Ways 1) Change in “Quantity Demanded” This is just a change along the demand curve. Notice how the blue demand line did not move. Just price changed, so we moved from one “quantity” to another. 2) Change in “Demand” This is a shift of the entire demand curve either “left” or “right.” For example, this might be a really hot day, so more people want lemonade

22. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Demand Can Change in Two Ways 1) Change in “Quantity Demanded” This is just a change along the demand curve. Notice how the blue demand line did not move. Just price changed, so we moved from one “quantity” to another. 2) Change in “Demand” This is a shift of the entire demand curve either “left” or “right.” Notice how the new blue demand line shows that more lemonade will be demanded at every price. D2D2

23. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. You Draw the Graph On your notes there is a graph labeled “Increase in Demand.” Draw an increase in demand on that graph. Increase in Demand Draw This Graph

24. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. You Draw the Graph On your notes there is a graph labeled “Increase in Demand.” Draw an increase in demand on that graph. Increase in Demand D2D2

25. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. You Draw the Graph On your notes there is a graph labeled “Increase in Demand.” Draw an increase in demand on that graph. On your notes there is a graph labeled “Decrease in Demand.” Draw a decrease in demand on that graph. Increase in Demand Decrease in Demand Draw This Graph D2D2

26. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. You Draw the Graph On your notes there is a graph labeled “Increase in Demand.” Draw an increase in demand on that graph. On your notes there is a graph labeled “Decrease in Demand.” Draw a decrease in demand on that graph. Increase in Demand Decrease in Demand D2D2 D2D2

27. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Increases Demand There are six factors that will cause demand to increase.

28. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Increases Demand There are six factors that will cause demand to increase. 1) Consumers enter the market Examples include an increase in the birth rate, an influx of immigrants, or students arriving in a college town.

29. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Increases Demand There are six factors that will cause demand to increase. 1) Consumers enter the market Whenever people have more money (raise, tax refund, etc.), they are willing and able to spend it on more things. 2) Consumers have more money

30. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Increases Demand There are six factors that will cause demand to increase. 1) Consumers enter the market If consumers think they will have more money in the future or that the economy will grow (along with prices), they will purchase now. 2) Consumers have more money 3) Consumers expect good things to happen in the future

31. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Increases Demand There are six factors that will cause demand to increase. 1) Consumers enter the market Items may become more popular due to a shift in tastes. This may happen because of fads, beliefs, culture, or advertising. 2) Consumers have more money 3) Consumers expect good things to happen in the future 4) Product is a fad (popular)

32. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Increases Demand There are six factors that will cause demand to increase. 1) Consumers enter the market If an item that serves a similar function (substitute) becomes expensive, consumers will demand more of the original item. 2) Consumers have more money 3) Consumers expect good things to happen in the future 4) Product is a fad (popular) 5) Price of a substitute good increases

33. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Increases Demand There are six factors that will cause demand to increase. 1) Consumers enter the market When goods are consumed together (complements), a decrease in the price of one makes both more appealing. 2) Consumers have more money 3) Consumers expect good things to happen in the future 4) Product is a fad (popular) 5) Price of a substitute good increases 6) Price of a complementary good decreases

34. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Decreases Demand There are six factors that will cause demand to decrease.

35. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Decreases Demand There are six factors that will cause demand to decrease. 1) Consumers leave the market Examples include a decrease in the birth rate, people moving away, or students leaving a college town for the summer.

36. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Decreases Demand There are six factors that will cause demand to decrease. 1) Consumers leave the market Consumers will obviously not be able to buy as much if less money is available. This can be caused by unemployment, taxes, etc. 2) Consumers have less money

37. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Decreases Demand There are six factors that will cause demand to decrease. 1) Consumers leave the market If consumers think they will have less money in the future or that the economy will shrink (along with prices), they will purchase later. 2) Consumers have less money 3) Consumers expect bad things to happen in the future

38. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Decreases Demand There are six factors that will cause demand to decrease. 1) Consumers leave the market Items may become less popular due to a shift in tastes. Products that were once in style may suddenly become out of favor. 2) Consumers have less money 3) Consumers expect bad things to happen in the future 4) Product goes out of style

39. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Decreases Demand There are six factors that will cause demand to decrease. 1) Consumers leave the market If an item that serves a similar function (substitute) becomes inexpensive, consumers will switch their demand to the substitute. 2) Consumers have less money 3) Consumers expect bad things to happen in the future 4) Product goes out of style 5) Price of a substitute good decreases

40. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Decreases Demand There are six factors that will cause demand to decrease. 1) Consumers leave the market When goods are consumed together (complements), an increase in the price of one makes both less appealing. 2) Consumers have less money 3) Consumers expect bad things to happen in the future 4) Product goes out of style 5) Price of a substitute good decreases 6) Price of a complementary good increases

41. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. The Effects of Shifting Demand When the demand curve shifts, it affects quantity and price. Complete the table (on your notes) by deciding whether quantity and price increase or decrease for each scenario. Use the graphs to help you.

42. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. The Effects of Shifting Demand When the demand curve shifts, it affects quantity and price. Complete the table (on your notes) by deciding whether quantity and price increase or decrease for each scenario. Use the graphs to help you. Effect on QuantityEffect on Price Increase in Demand Decrease in Demand Show Answers Draw the Graphs

43. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. The Effects of Shifting Demand When the demand curve shifts, it affects quantity and price. Complete the table (on your notes) by deciding whether quantity and price increase or decrease for each scenario. Use the graphs to help you. Effect on QuantityEffect on Price Increase in Demand Decrease in Demand Show Answers Increase in Demand D2D2 Decrease in Demand D2D2

44. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. The Effects of Shifting Demand When the demand curve shifts, it affects quantity and price. Complete the table (on your notes) by deciding whether quantity and price increase or decrease for each scenario. Use the graphs to help you. Effect on QuantityEffect on Price Increase in Demand Decrease in Demand Increases (  ) Decreases (  ) Increases (  ) Decreases (  ) Increase in Demand D2D2 Decrease in Demand D2D2

45. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Changes in Demand (a)Complete this version if you feel you need the teacher to work with you on this topic. (b)Complete this version if you feel you have a fairly good understanding of the targets. (c)Complete this version if you feel this topic is easy. This is today’s assignment.

46. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. “Law of Demand” Targets Knowledge 1Describe the relationship between price and quantity demanded. Reasoning 2Determine why demand curves might shift. Skill 2Draw shifts in the demand curve.

47. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Resources