Transcript Micro Lesson 3 - Effingham County Schools

Micro Lesson 3
Changes in Demand
Grab Your Clickers From the
Front
Join In!
Also: Think about how much bottled
water you buy at school.
In one week’s time, how many
bottles of water do you buy from
the hallway machines?
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Imagine the price was 50% higher
per bottle. How many bottles of
would you buy in one week?
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Imagine the price was 50% lower
per bottle. How many bottles of
would you buy in one week?
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News Item
FDA Investigates Claims That Dasani
Water Consumption Linked to
Alzheimer’s Disease.
Considering the news article you saw,
how many bottles of water would you
buy in 1 week at current prices?
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Imagine the price was 50% higher
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Imagine the price was 50% lower
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Return Your Clickers
Change in Demand - Continued
P
P
D
Q
D
Q
Change in Demand
• when Q demanded changes at all P’s.
• The Beyonce Rule: When demand decreases, the
demand curve shifts to the left.
…to
the
left, to
the
left.
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Change in Demand - Continued
Caused by change in:
Income
Tastes
P change in substitute/complement
Consumer expectations
# of buyers
Marker Board Activity
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Draw a demand curve
Write “Ben & Jerry’s Ice Cream” at the top.
Show a price increase.
What would happen if:
the price of chocolate syrup went up?
Blue Bell introduced some new flavors?
the price of Breyer’s went up?
B&J announced they would be issuing coupons
next month.
• more people lose their jobs.
Demand Shift Quiz
1. The price of ice cream falls. What
effect does this have on the market for
ice cream?
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A) Demand curve shifts right.
B) Demand curve shifts left.
C) Quantity demanded of ice cream increases.
D) Quantity demanded of ice cream decreases.
2. The price of ice cream falls. What
effect does this have on the market for
chocolate syrup?
• A) Demand curve shifts right.
• B) Demand curve shifts left.
• C) Quantity demanded of chocolate syrup
increases.
• D) Quantity demanded of chocolate syrup
decreases.
3. The price of chocolate syrup rises.
What effect does this have on the
market for ice cream?
• A) The demand for ice cream increases.
• B) The demand for ice cream decreases.
• C) The quantity demanded of ice cream
increases.
• D) The quantity demanded of ice cream
decreases.
4. Tax rates are lowered for all citizens.
What effect will this have on the
market for consumer goods?
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A) Demand decreases. Curve shifts left.
B) Demand decreases. Curve shifts right.
C) Demand increases. Curve shifts left.
D) Demand increases. Curve shifts right.
5. The price of pancake mix goes up.
What effect does this have on the
market for pancake mix?
• A) The quantity demanded of pancake mix
increases.
• B) The quantity demanded of pancake mix
decreases.
• C) The demand for pancake mix increases.
• D) The demand for pancake mix decreases.
6. The price of pancake mix goes up.
What effect does this have on the
market for syrup?
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A) The quantity demanded of syrup increases.
B) The quantity demanded of syrup decreases.
C) The demand for syrup increases.
D) The demand for syrup decreases.
7. Georgia Boots have become very
popular in the last few years. What
happened to the market for Georgia
Boots during this time?
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A) The quantity demanded of GA Boots increased.
B) The quantity demanded of GA Boots decreased.
C) The demand for GA Boots increased.
D) The demand for GA Boots decreased.
8. The price of butter goes up. What
will happen to the market for butter?
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A) The quantity demanded of butter will increase.
B) The quantity demanded of butter will decrease.
C) The demand for butter will increase.
D) The demand for butter will decrease.
9. The price of butter goes down. What
will happen to the market for
margarine?
• A) The quantity demanded of margarine will
increase.
• B) The quantity demanded of margarine will
decrease.
• C) The demand for margarine will increase.
• D) The demand for margarine will decrease.
10. Consumers expect that home prices
will fall next year. What will happen to
the home market now?
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A) The quantity demanded of homes will increase.
B) The quantity demanded of homes will decrease.
C) The demand for homes will increase.
D) The demand for homes will decrease.