civics and economics chapters 20 &21 amos demand
TRANSCRIPT
Civics and Economics
Chapters 20 &21
Amos
Demand
Bell Ringer:
Complete page 556- Analyzing Charts
Questions 1 & 2 in your Bell Ringer notes!
Introduction to Demand
Demand- The desire, willingness, and ability to buy a good or service.
In Demand Out of Demand
Demand Schedule- A table that list the various quantities of a product or service that someone is willing to buy over a range of possible prices.
Demand Schedule- Gas
Price $/ gal Quantity10 5
7 7
5 10
3 16
1.5 33
0.75 66
Demand Curve- A graph that shows the amount of a product that would be bought at all possible prices in the market.
Dem and Schedu le- Gas P r ice $/ gal
0
1
2
3
4
5
6
7
8
9
10
11
0 10 20 30 40 50 60 70
Quantity Gallons
Pri
ce $
Demand Schedule- Gas Price $/ gal
Dem and Schedu le- Gas P r ice $/ gal
0
1
2
3
4
5
6
7
8
9
10
11
0 10 20 30 40 50 60 70
Quantity Gallons
Pri
ce $
Demand Schedule- Gas Price $/ gal
Practical Exercise
Creation of an Individual Demand Schedule1. Name a product everyone uses.
2. Create a price scale for that particular product (list an extreme price and an exceptionally low price).
3. Ask your partner how many of this certain product they would buy at the prescribed prices (Partners, keep the mentality that you demand this product as long as the price is reasonable).
4. Be prepared to show your scale under the document camera or list on the board.
Pri
ce $
Quantity
Law of Demand- Quantity demanded and price move in opposite direction
#
Individual vs. Market Demand
Market Demand- The total demand of all consumers for their product or service
Questions concerning demand in the marketplace:
1. Where is the demand?
2. How do you measure the demand?
Diminishing Marginal Utility
What is utility?
Pleasure, usefulness, or satisfaction we get from using a product
Diminishing Marginal Utility- Principle that our additional satisfaction, or our marginal utility, tends to go down as more and more units are consumed
Factors Affecting Demand
Changes in Demand Number of Consumers Consumers’ Income Consumers’ Taste Consumers’ Expectations Substitutes Complements
Lawn Service
$0
$10
$20
$30
$40
$50
$60
0 50 100 150 200 250 300 350 400
Quantity Demanded
Pric
e
Series1
Elasticity of Demand
Demand Elasticity- The extent to which a change in price causes a change in the quantity demanded
Elastic Demand
Change in price causes a relatively large percentage change in quantity demanded
Examples- Cars, Clothing, Shoes, Jewelry
Inelastic Demand
Price changes have little effect on the quantity demanded
Examples- Gasoline, Turkeys at Thanksgiving, Electricity, Heat, Medicine
Independent Research
Research a best selling product of history. Answer the questions highlighted on page
574-575 in your book. Focus on why the product sold as well as it
did. Create a visual presentation on a poster that
highlights these ideas. Present the information to the class.
NintendoHula HoopModel T FordMustangBlue JeansStarbucks CoffeePizza Delivery (Pick a Chain)McDonald’s BurgersKentucky Fried ChickenNike Shoes/ Jordan’sSkateboardsSurfboardsBicycle