agenda test #1 test #1 intro to demand intro to demand –lecture –going to the movies homework…...
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AgendaAgenda Test #1Test #1
Intro to DemandIntro to Demand– LectureLecture– Going to the moviesGoing to the movies
Homework…Homework…– Crossword puzzleCrossword puzzle– Print and Review Powerpoint for class two periods from
today– Read “Current Reading Assignment”
Next Class….Watch “Freakonomics”
Test #1Test #1Ten Minute ReviewTen Minute Review
Remain Quiet or detention awaits youRemain Quiet or detention awaits you
Cheat and you dieCheat and you die(and you get a ZERO on the test…(and you get a ZERO on the test…
a really embarrassing eulogy)a really embarrassing eulogy)
TEST ENDS @ 10.50TEST ENDS @ 10.50
Module #2 – Supply and Module #2 – Supply and DemandDemand
Law of DemandLaw of Demand– As price increases, quantity demanded As price increases, quantity demanded
decreasesdecreases– As price decreases, quantity demanded As price decreases, quantity demanded
increasesincreases
Module #2 – Supply and Module #2 – Supply and DemandDemand
Law of DemandLaw of Demand– As price increases, quantity demanded As price increases, quantity demanded
decreasesdecreases– As price decreases, quantity demanded As price decreases, quantity demanded
increasesincreases
– Price means QPrice means Qd d and Price means Qand Price means Qd d
Module #2 – Supply and Module #2 – Supply and DemandDemand
Law of DemandLaw of Demand– As price increases, quantity demanded As price increases, quantity demanded
decreasesdecreases– As price decreases, quantity demanded As price decreases, quantity demanded
increasesincreases
– Price means QPrice means Qd d and Price means Qand Price means Qd d
– P QP Qd d , P Q , P Qd d
LAW OF DEMANDLAW OF DEMANDAs Price Falls…As Price Falls…
… …Quantity Demanded RisesQuantity Demanded Rises
As Price Rises…As Price Rises…
… …Quantity Demanded FallsQuantity Demanded Falls
Price Quantity Demanded
Module #2 – Supply and Module #2 – Supply and DemandDemand
Law of DemandLaw of Demand– As price increases, quantity demanded As price increases, quantity demanded
decreasesdecreases– As price decreases, quantity demanded As price decreases, quantity demanded
increasesincreases
– P QP Qd d , P Q , P Qdd
– ““Quantity demanded” means willing Quantity demanded” means willing AND able to buy the good or serviceAND able to buy the good or service
Module #2 – Supply and Module #2 – Supply and DemandDemand
Law of DemandLaw of Demand– ““Quantity demanded” means willing Quantity demanded” means willing
AND able to buy the good or serviceAND able to buy the good or service
– Do I create demand if I want a $125,000 Do I create demand if I want a $125,000 sports car?sports car?
Module #2 – Supply and Module #2 – Supply and DemandDemand
Law of DemandLaw of Demand– ““Quantity demanded” means willing Quantity demanded” means willing
AND able to buy the good or serviceAND able to buy the good or service
– Do I create demand if I want a $125,000 Do I create demand if I want a $125,000 sports car?sports car?
– Sadly…NO.Sadly…NO.
Module #2 – Supply and Module #2 – Supply and DemandDemand
Law of Demand can be represented in a Law of Demand can be represented in a “Demand Schedule”“Demand Schedule”
A Demand Schedule is a table that relates A Demand Schedule is a table that relates Price (the driver) to Quantity demanded Price (the driver) to Quantity demanded (the responder)(the responder)
P QP Qdd
$6$6 88 1010 1212 14 14
This is a Demand Schedule
The Law of Demand can be The Law of Demand can be represented graphicallyrepresented graphically
Price Price
Quantity Quantity
The Law of Demand can be The Law of Demand can be represented graphicallyrepresented graphically
Price Price
Demand CurveDemand Curve
Quantity Quantity
Why does is go “high to low”?
The Law of Demand can be The Law of Demand can be represented graphicallyrepresented graphically
Price Price
Demand CurveDemand Curve
Quantity Quantity
Why does the demand curve go “high to low”?
Because when price is high, quantity demanded is lowAnd when price is low, quantity demanded is high.
Module #2 – Supply and Module #2 – Supply and DemandDemand
Going to the moviesGoing to the movies
P QP Qdd
$6$6
88
1010
1212
14 14
Module #2 – Supply and Module #2 – Supply and DemandDemand
Going to the moviesGoing to the movies
P QP Qdd
$6$6
88
1010
1212
14 14
As price went up, did Qd go down? Law of demand?
Freakonomics…Summary
FREAKONOMICS is the film version of the bestselling book of the same name by Steven Levitt and Stephen Dubner. The film examines human behavior with provocative case studies, bringing together a team of filmmakers responsible for some of the most acclaimed and entertaining documentaries in recent years.
Four Segments
1. A Roshanda By Any Other Name : Morgan Spurlock's investigation of the possible implications of names, especially "black" vs. "white" names, in personal development and social advancement.
Question: Can an initial perception – in this case because of your name -- affect job prospects, promotions, etc.?
2. Pure Corruption : Alex Gibney's exploration of the Japanese concept of yaochō (match fixing) in Sumo wrestling.
Question: Does the appearance honesty create an environment where corruption is most likely to exist? Think Penn State football, the Catholic church, the Boy Scouts, etc.
3. It's Not Always A Wonderful Life : Narrated by Melvin Van Peebles and directed by Eugene Jarecki, this segment explores the question of what led to a decline in the urban crime rate in the US during the mid- to late 1990s. The authors of Freakonomics suggest that a substantial factor was the 1973 US Supreme Court case, Roe v. Wade, in the US which permitted people to have legal abortions, leading to more wanted children with better upbringings.
Comment: Just because it’s controversial doesn’t mean it’s wrong. And correlation is not causation.
4. Can You Bribe A 9th Grader To Succeed! : Rachel Grady documents an experiment in Chicago Heights, Illinois to determine the efficacy of paying students to achieve higher grades.
Comment: Incentives matter.
Next class we watch Freakonomics
Module #2 – Supply and Module #2 – Supply and DemandDemand
HomeworkHomework– Crossword puzzleCrossword puzzle– Print and Review Powerpoint for class
two periods from today– Read “Current Reading Assignment”
(online)
– Next Class….Watch Freakonomics
HandoutsHandouts