BLOOM’S TAXONOMYBLOOM’S TAXONOMY

POP QUIZPOP QUIZ

KNOWLEDGEKNOWLEDGE

The The __________________________ states that, other states that, other things remaining the same, if the things remaining the same, if the price of a good rises, the quantity price of a good rises, the quantity demanded of that good decreases demanded of that good decreases and if the price of a good falls, the and if the price of a good falls, the quantity demanded of that good quantity demanded of that good increases.increases.

COMPREHENSIONCOMPREHENSION

State the law of demand in your own State the law of demand in your own words. words.

APPLICATIONAPPLICATION

Will an increase in the price of roller Will an increase in the price of roller blades lead to a decrease in the blades lead to a decrease in the demand for roller blades or a demand for roller blades or a decrease in the quantity demanded? decrease in the quantity demanded?

ANALYSISANALYSIS

Bob enjoys reading the newspaper each Bob enjoys reading the newspaper each morning. This morning Bob said, "The morning. This morning Bob said, "The increase in the price of the newspaper has increase in the price of the newspaper has decreased my demand to only weekend decreased my demand to only weekend mornings." As a student of economics, you mornings." As a student of economics, you know that Bob's statement is incorrect.know that Bob's statement is incorrect. a. Rewrite Bob's statement making corrections a. Rewrite Bob's statement making corrections

were necessary.were necessary. b. Discuss what was incorrect about Bob's b. Discuss what was incorrect about Bob's

statement and how the changes you made in statement and how the changes you made in part (a) make the statement correct.part (a) make the statement correct.

SYNTHESISSYNTHESIS

Graphically depict the affect on the Graphically depict the affect on the Demand Curve of a normal good Demand Curve of a normal good when consumer’s income increases. when consumer’s income increases.

EVALUATIONEVALUATION1.1. Evaluate the graph below. Defend the Evaluate the graph below. Defend the

accuracy of the graph using economic terms accuracy of the graph using economic terms for each numbered item.for each numbered item.

2.2. Assume both D1 and D2 are the result of a Assume both D1 and D2 are the result of a single event. Describe such a possible event single event. Describe such a possible event detailing the movement of demand.detailing the movement of demand.