Transcript File - Mr. Costanzo

Response Questions
9/11/13
1. Describe the endangered wildlife trade?
2. What is increasing demand for endangered wildlife trade?
3. If Thai and American authorities are able to limit the amount
of wildlife in the black market what do you think will happen to
demand for endangered wildlife? Why?
Graphing
Demand
What we know about Graphing Demand
What is the below chart
called?
Can anyone explain why
the demand curve slopes
downward?
Demand Schedule
The Law of demand! As
price decreases
demand/quantity sold
increase.
Shifts in Demand Curve
All of the determinants that
we’ve discussed (advertising,
population, income, etc.) will
shift the demand curve one way
or another.
D2
When demand goes up the
curve shifts right.
When demand goes down the
curve shifts left.
D3
Examples
Susie is an 11 year old
Entrepreneur. she sells cookies
from a stand in front of her house.
Susie has come to realize that
$1.00 a cookie is the best price to
sell.
$1.00
D2
100
200
300
How many cookies will she sell at 1
dollar?
will the curve go right or
Susie decides to create a big sign
left?
advertising her cookies on the main
road near her house. Demand About how many will she
increases!
sell now?
Examples
Susie is doing great until her arch
enemy, Victoria, opens her own
cookies stand down the street
cutting into Susie’s lucrative
business.
What way will the demand curve
shift? Left or Right?
$1.00
D3
About how many cookies will Susie
sell at 1 dollar with Victoria as
competition?
100
200
300
Take a second and think about our determinants,
what might be some ways that Susie might sell more
cookies?
Nonprice Determinants of Demand
A nonprice determinant is something that will shift the
demand curve one way or another.
So far we’ve discussed six nonprice determinants
Each one will shift the Demand Curve differently
Income
Advertising
complementary
substitutes
Expectations
Population
Impact of Nonprice Determinants on Demand
Right now I will pass out a practice sheet so you can have a
crack at figuring out how non-price determinants effect
demand.
For each question you will be asked to do 3 things.
a) What is the determinate being discussed?
B) How will demand be effected in the example and why?
c) Display which way the demand curve will shift on the
graph.
To Sum up our Demand discussion
Please write up your own scenario Demand scenario and
include:
1. What your product is.
2. What is the best price to sell it at.
3. Include two instances where a non-price determinate
effected demand for your product.
4. create a simple graph to demonstrate.
Please do this in your response section and you are done for
the day!