Transcript Demand - Haiku

Demand
Civics and Economics
Chapters 20 &21
Amos
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 ScheduleGas
Price $/ gal Quantity
10
7
5
7
5
3
10
16
1.5
0.75
33
66
Demand Curve- A
graph that shows the
amount of a product
that would be bought at
all possible prices in the
market.
Demand Schedule- Gas Price $/ gal
11
10
9
8
7
Price $

6
Demand Schedule- Gas Price $/ gal
5
4
3
2
1
0
0
10
20
30
40
50
Quantity Gallons
60
70
Demand Schedule- Gas Price $/ gal
11
10
9
8
Price $
7
6
Demand Schedule- Gas Price $/ gal
5
4
3
2
1
0
0
10
20
30
40
50
Quantity Gallons
60
70
Practical Exercise

Creation of an Individual Demand Schedule
1.
2.
3.
4.
Name a product everyone uses.
Create a price scale for that particular product (list an
extreme price and an exceptionally low price).
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).
Be prepared to show your scale under the document
camera or list on the board.
Price $
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.
2.
Where is the demand?
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
$60
$50
Price
$40
$30
Series1
$20
$10
$0
0
50
100
150
200
Quantity Demanded
250
300
350
400
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.
Nintendo
Hula Hoop
Model T Ford
Mustang
Blue Jeans
Starbucks Coffee
Pizza Delivery (Pick a Chain)
McDonald’s Burgers
Kentucky Fried Chicken
Nike Shoes/ Jordan’s
Skateboards
Surfboards
Bicycle