Diese Präsentation wurde erfolgreich gemeldet.
Wir verwenden Ihre LinkedIn Profilangaben und Informationen zu Ihren Aktivitäten, um Anzeigen zu personalisieren und Ihnen relevantere Inhalte anzuzeigen. Sie können Ihre Anzeigeneinstellungen jederzeit ändern.

Demand ch. 4

2.182 Aufrufe

Veröffentlicht am

Veröffentlicht in: Bildung
  • Als Erste(r) kommentieren

Demand ch. 4

  1. 1. Intro to Demand Unit 4: Chapter 4 Economics
  2. 2. The Law of Demand As price increases ↑ : the quantity demanded decreases ↓ ● As price decreases ↓ : the quantity demanded increases ↑
  3. 3. Why does the law of Demand work? 2 factors… USUALLY…  If price goes up, you can’t afford to buy as much quantity for the same amount of money.  If the price goes up, you buy an alternative (and less quantity of the original good).
  4. 4. Market Demand Schedule  Willingness to demand (or buy) a good/service at ALL given prices.  Your graph above is a Market Demand Schedule Graph
  5. 5. Market Demand Schedule  Individual demand schedules get combined into a market demand schedule. ● Simply a column list of how much quantity a set of consumers demand at each price.
  6. 6. Change in Quantity Demanded: Just a Move Along the Demand Curve  Movement is based on the Law of Demand: as price changes, Quantity Demanded changes. At a price of $1.50, what is the total quantity of gizmos that this market demands?
  7. 7. CHANGE in Demand:  SHIFT IN THE ENTIRE LINE  Now, at the SAME Price ALL The sudden you want MORE or LESS.  Let’s try and see if it works with our class example. (Cookies)
  8. 8. What Shifts Demand: 1. Consumer Income  Increase income – people buy more; decrease income – people buy less.  Example: I get a raise so I buy that new car I’ve been needing!  Example: Class Student hits lottery, buys more cookies  Demand curve shifts – right if increase and left if decrease
  9. 9. 2. Substitutes  Concerns related/similar product that will be used in place of another product  Example: buy margarine if price of butter goes up  Note: result is Change in Demand for the substitute Margarine. Is change in quantity demanded for original/Butter due to its price changing THINK:  If Coke prices went up drastically, what would happen to the Demand of Faygo cola?
  10. 10. 3. Expectations (Future)  The way people think about the future – positive or pessimistic.  Example: Clothing store advertises BIG SALE NEXT WEEK.  Ex: news of more layoffs, people hold back on big purchases, luxury items…  Ex: forecast snow storm/snow day and moms run up to buy milk and rent videos for the kids
  11. 11. 4. Consumer Tastes  Change mind of product due to ads, celebrity, fashion trends/ gets ‘old’, seasonal tastes, hear something good/ bad about product re: health, environment…  Example: news story report: health risks of product  Example: media blitz for Iphone 6, Iwatch
  12. 12. 5. Compliments  Other related goods sold along with a product  Example: when Turkey goes on sale (see change in quantity demanded for the Turkey) see Change in Demand for gravy, stuffing, potatoes…  Example: Demand of Hotdogs if the price of hotdog buns TRIPLES!  Peanut butter & Jelly
  13. 13. 6. Number of Consumers (Market Size)  Increase in the number of people with demand for goods/services  Example: population increase due to immigration  Example: new market opens up –like China! Huge increase in number of consumers!

×