Transcript Quantity demanded - La Salle High School

Agenda

Test #1

Intro to Demand
– Lecture
– Going to the movies

Homework…
– Crossword puzzle
– Print and Review Powerpoint for class two periods from today
– Read “Current Reading Assignment”

Next Class….Watch “Freakonomics”
Test #1
Ten Minute Review
Remain Quiet or detention awaits you
Cheat and you die
(and you get a ZERO on the test…
a really embarrassing eulogy)
TEST ENDS @ 10.50
Module #2 – Supply and Demand

Law of Demand
– As price increases, quantity demanded
decreases
– As price decreases, quantity demanded
increases
Module #2 – Supply and Demand

Law of Demand
– As price increases, quantity demanded
decreases
– As price decreases, quantity demanded
increases
– Price means Qd and Price means Qd
Module #2 – Supply and Demand

Law of Demand
– As price increases, quantity demanded
decreases
– As price decreases, quantity demanded
increases
– Price means Qd and Price means Qd
–P
Qd
, P Qd
LAW OF DEMAND
As Price Falls…
…Quantity Demanded Rises
As Price Rises…
…Quantity Demanded Falls
Price
Quantity
Demanded
Module #2 – Supply and Demand

Law of Demand
– As price increases, quantity demanded
decreases
– As price decreases, quantity demanded
increases
–P
Qd , P Q d
– “Quantity demanded” means willing AND able
to buy the good or service
Module #2 – Supply and Demand

Law of Demand
– “Quantity demanded” means willing AND able
to buy the good or service
– Do I create demand if I want a $125,000
sports car?
Module #2 – Supply and Demand

Law of Demand
– “Quantity demanded” means willing AND able
to buy the good or service
– Do I create demand if I want a $125,000
sports car?
– Sadly…NO.
Module #2 – Supply and Demand
Law of Demand can be represented in a
“Demand Schedule”
 A Demand Schedule is a table that relates Price
(the driver) to Quantity demanded (the
responder)

P
$6
8
10
12
14
Qd
This is a
Demand
Schedule

The Law of Demand can be represented
graphically
Price
Quantity

The Law of Demand can be represented
graphically
Price
Demand Curve
Quantity
Why does is go “high to low”?

The Law of Demand can be represented
graphically
Price
Demand Curve
Quantity
Why does the demand curve go “high to low”?
Because when price is high, quantity demanded is low
And when price is low, quantity demanded is high.
Module #2 – Supply and Demand
Going to the movies
P
$6
8
10
12
14
Qd
Module #2 – Supply and Demand
Going to the movies
P
Qd
$6
8
10
12
14
As price went up, did Qd go down?
Law of demand?
Next class we
watch Freakonomics
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.
Module #2 – Supply and Demand
Homework
– Crossword puzzle
– Print and Review Powerpoint for class two
periods from today
– Read “Current Reading Assignment” (online)
– Next Class….Watch Freakonomics
Handouts