1. Bellringer ½ sheet
1. 3 items you will buy more of when you start making
$25,000/year or more
2. 3 items you will buy less of when you start making
$25,000/year or more
3. OPTIC for this graph:
4. Get out your notes

2. Changes to demand
Does Demand
change when the
price of a good
changes?
Only the Quantity
demanded
changes with price
Review:
What is the Q*D at
Price = $1.50?
When Q*D is at 50,
what is the price?
Revenue max?

3. D

6. D

8. Demand changes over time

9. Demand Vocab
 “complements” – a good that is purchased with
another
 “substitutes” – a good which can be substituted for
another
 Substitution effect - Changes to prices of similar
goods changes people’s demand
 Normal goods – goods you buy more of when your
income increases
 Inferior goods – goods you buy less of when your
income increases
 Income Effect – changes to a person’s income
changes their demand

10. Why is this important for firms?

11. What sorts of goods are these?
Others?
Compliments?
Normal/Inferior?

16. Cultural?
 Preferences change
 South Korea >>>>>

23. At your tables
6. When would be a good time to sell normal
goods? (when the economy is….?)
7. When would be a good time to sell inferior
goods? (when the economy is…..?)
8. List two complements for tomatoes
9. List two substitutes for tomatoes

24. Determinants of Demand
 Causes that
will change
Demand

25. Determinants of Demand
 Changes to tastes and preferences

26. Determinants of Demand
 Availability and price of substitute goods

27. Determinants of Demand
 Availability and price of complements

28. Determinants of Demand
 Changes to income

29. Determinants of Demand
 Changes to population

30. Determinants of Demand
 Expectations of future price

31. A trick to remember
determinants of demand
T R I B E
T = tastes of consumers
R = Related goods (P$ change)
I = Income of buyers
B = # of buyers
E = expectations of future price
http://quizlet.com/2043838/individual-markets-flash-cards/

32. White boards
Which part of TRIBE will
change in the following
scenarios to the Tucson
movie theater market?
1. Average wage in Tucson increases
2. Price of DVDs & flat screen TVs decrease
3. Population of Tucson doubles
4. New Spiderman movie comes out
5. KOLD reports movie tickets will increase 15%
in 2014
6. Xbox1 & PS4 hit the stores

33. On a separate sheet of paper
 Identify the changes to the demand for tomatoes
Identify the part of TRIBE and increase or decrease or no change
1. New residents move to Arizona
2. Unemployment rises
3. The price of spaghetti noodles increase
4. Americans try eat healthier and eat more salads
5. Americans try eat healthier and eat less pizza
6. Price of tomatoes decreases
7. Average US income rises
8. Explosion at V8 juice facility
9. The price of ground beef decreases
10. Media reports salmonella outbreak from California tomatoes
11. Consumers expect tomato prices to increase next month
12. Salsa becomes #1 US condiment
13. Price of tortilla chips triples
14. Make up your own example and explain demand change