1. Demand

2. Bellringer Copy the objective: I will be able to describe the relationship between price and quantities demanded. “Drop in Demand Forces Local Hardware Store to Close.” What comes to mind when you read this headline?

3. Quiz Which productive resources are scarce?  A. Land  B. Labor  C. All of the options  D. Capital An item that is scarce must meet three requirements. Which of the following is NOT one of these requirements  A. Limited in quantity  B. Expensive  C. Desirable  D. More than one use Why is radioactive waste not scarce?  A. It is not limited in quantity  B. It is expensive  C. It is not desirable  D. It does not have more than one use Opportunity cost can be defined as  A. Your first choice  B. Your favorite choice  C. Your next best option  D. All the other choices

4. Market Survey You each have a budget of $3.00 and can buy one 12- ounce container of a beverage for $1.00. Stand beneath the heading or sign for the beverage you want to buy.  How many containers are you willing to buy.

5. How Many Will We Buy PriceQuantity Demanded $2.50 $2.00 $1.50 $1.00

6. How Many Will We Buy PriceQuantity Demanded $2.50 $2.00 $1.50 $1.00 Price Quantity

7. Demand Demand: the relationship between various prices and the quantities consumers are willing and able to buy during some time period, all other things being equal. Inverse relationship between price and demand  Law of Demand Why are consumers willing and able to buy more of a product at a lower price? http://www.econedlink.org/interactives/index.php?i id=210&type=educator http://www.econedlink.org/interactives/index.php?i id=210&type=educator

8. Closure What does the graph represent? What does the curve look like? Why is the curve downward sloping? What kind of relationship is this? What do we call this inverse relationship? Which picture of demand is easier to understand, the table or the graph?

9. Demand Shifters

10. PriceQuantity Demanded (Thousands) $1.005.7510.5015.2520 What does quantity demanded mean? What is the quantity demanded at that price of $1.00 and $.25 As price goes down, what happened to the quantity demanded? As price goes up, what happens to the quantity demanded? Demand Schedule for Bubble Soda

11. Number of Consumers If the number of consumers in the market for a product increases, the demand for the product will increase. If the number of consumers in a market for a product decreases, the demand for the product will decrease. If a new high school is build in the same block as a fast good restaurant, the demand for the fast food restaurant's products will increase. If an automobile manufacturing plant near the fast food restaurant closes, the demand for the restaurants products will decrease.

12. Consumer Tastes and Preferences If consumer tastes and preferences for a product change, the demand for the product will change. If fashion magazines are showing short skirts, the demand for short skirts will increase. If fashion magazines show few pictures of short skirts, the demand for these skirts will decrease.

13. Consumer Income If consumer income increased (decrease), demand for most goods and services will increase(decrease). For example, if workers at a manufacturing facility sign a new contract that provides a 5% raise, these workers will have more income and their demand for goods and services will increase. If social security taxes increase for employ7ees, consumers will have less take home pay, and as a result, their demand for goods and services will decrease.

14. Price of Related Goods A change in the price of one good can change the demand for another good. One type of related goods are complements - goods that are purchases together. A decrease in the price of strawberries will cause an increase in the demand for whipped cream. An increase in the price of hamburger will cause a decrease in the demand for hamburger buns.