Civics and Economics Chapters 20 &21 Amos Demand

Civics and Economics

Chapters 20 &21

Amos

Demand

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 Schedule- Gas

Price $/ gal Quantity10 5

7 7

5 10

3 16

1.5 33

0.75 66

Demand Curve- A graph that shows the amount of a product that would be bought at all possible prices in the market.

Dem and Schedu le- Gas P r ice $/ gal

0

1

2

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11

0 10 20 30 40 50 60 70

Quantity Gallons

Pri

ce $

Demand Schedule- Gas Price $/ gal

Dem and Schedu le- Gas P r ice $/ gal

0

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2

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0 10 20 30 40 50 60 70

Quantity Gallons

Pri

ce $

Demand Schedule- Gas Price $/ gal

Practical Exercise

Creation of an Individual Demand Schedule1. Name a product everyone uses.

2. Create a price scale for that particular product (list an extreme price and an exceptionally low price).

3. 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).

4. Be prepared to show your scale under the document camera or list on the board.

Pri

ce $

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. Where is the demand?

2. 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

$0

$10

$20

$30

$40

$50

$60

0 50 100 150 200 250 300 350 400

Quantity Demanded

Pric

e

Series1

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.

NintendoHula HoopModel T FordMustangBlue JeansStarbucks CoffeePizza Delivery (Pick a Chain)McDonald’s BurgersKentucky Fried ChickenNike Shoes/ Jordan’sSkateboardsSurfboardsBicycle