Transcript Chapter 6 Demand

Demand Review
Do NOT waste the white board pen!
Tomorrow’s test will NOT be multiple choice. It will be
Short-answer and graphing!!!!!
Make sure your Group # is clearly shown
on your Dry-Erase Board at all times
Demand Schedule
Using Half the Dry-Erase Board. . .
Draw
a demand schedule at price
intervals of every 20 cents
beginning at sixty cents and ending
at $2.00. For quantity purchased, do
intervals of 2 units beginning with
zero and ending at 14. Make sure it
follows the Law of Demand!
Demand Curve
Using
your demand schedule,
on the other half of your DryErase Board, draw your
demand curve at those
intervals.
Marginal Utility
Explain what marginal utility is

Explain what the law of diminishing
marginal utility is

Determinants of Demand
List
these major determinants
of demand
In
 Times Past
 Really Good (there are two types of related goods)

For each, write down an
example and be able to
explain it

Determinants of Demand
List
these major determinants of
demand
White
Beans
Existed
For each, write down an
example and be able to explain it

Demand Graph - Decrease
Using Half the Dry-Erase Board. . .
Draw
a demand graph showing
the appropriate shift if demand
decreases. Title in large letters,
“Decrease in Demand”
Demand Graph - Increase
Using The Other Half the Dry-Erase
Board. . .
Draw
a demand graph
showing the appropriate shift
if demand increases. Title in
large letters, “Increase in
Demand”
Elasticity
Explain
what we mean when we
say that a product’s demand is
price elastic

Provide an example and
explain
Draw a graph that show’s a
product’s demand is price elastic
Inelastic
Explain what we mean when we say
that a product’s demand is price
inelastic

Provide an example and
explain
Draw
a graph that show’s a
product’s demand is price inelastic
3
Characteristics of products that
would have inelastic demand
3
Characteristics of products that
would have elastic demand
Changing Income – Inferior goods
What are Inferior Goods?
If
income goes
Demand
goes ?
Elastic, Inelastic or Unitary
Write
the formula that
is used to determine
Price Elasticity of
Demand?
Elastic, Inelastic or Unitary?
% change in price
= 10
 % change in quantity
demanded = 10

Elastic, Inelastic or Unitary
%
change in price
=
25
% change in quantity demanded
= 5
Elastic, Inelastic or Unitary
%
change in quantity
demanded = 20
 % change in price
10
=
Changing Attitudes
If
attitude towards a
product declines ( )

Demand will go ?
Changing Price of Substitute Products
If
price of butter goes down ( )
The
go ?
demand for margarine will
Changing Price of Complementary
Products
If
the price of hamburger
patties goes up ( )
The
demand for hamburger
buns goes ?
Write
the 3 important
Components of
Demand
Demand Graph
Hold
up the graph that red or
yellow created that will represent
the effect an increase in price of
Sprite will have on 7up.