1 / 8

Chapter 4 Demand

Chapter 4 Demand. Section 1 Understanding Demand. Review. Economic Systems are the different ways of answering the three fundamental questions in Economics What to produce? How much to produce? Who gets what?

vernon-stafford
Télécharger la présentation

Chapter 4 Demand

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 4Demand Section 1 Understanding Demand

  2. Review Economic Systems are the different ways of answering the three fundamental questions in Economics • What to produce? • How much to produce? • Who gets what? In a market system , the interaction of buyers and sellers determines the prices of most goods as well as what quantity a good will be produced.

  3. In other words Buyers demand goods + Sellers supply goods = An agreement on the price paid and quantity traded for that price.

  4. Important terms • Demand – the desire to own something and the ability to pay for it. • In other words:demandonly happens when a buyer has the income (money) necessary to purchased the desired goods

  5. Law of Demand – • When a good’s price goes up, consumers will buy less of it. • When a good’s price is lower, consumers will buy more of it. Price Price Goods Goods

  6. Two behavioral patterns effecting Demand: • Substitution Effect – • When Consumers react to an increase in a good’s price by consuming less of that good and more of other goods. • Income Effect – • The change in consumption resulting from a change in real income.

  7. Measuring Demand • Demand Schedule – a table that lists the quantity of a good that a person will purchase at each price in a market • Market Demand Schedule – a table that shows the quantities demanded at each price by all consumers in the market.

  8. Practice creating a demand schedule • Retrieve the information from your classmates about the price and amount of T – Shirts ordered at that price. • Create a Market Demand Schedule from the information gathered. • Answer the questions regarding the lecture and create an additional demand schedule from the information from the worksheet

More Related