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Do Now: 3 /11/13

Do Now: 3 /11/13. What if the price of gas went up to $10 a gallon today? How would the country respond? How might it affect your life?. Protests in the Middle East last year made fuel supplies seem unstable, allowing producers to raise gas prices.

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Do Now: 3 /11/13

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  1. Do Now:3/11/13 What if the price of gas went up to $10 a gallon today? How would the country respond? How might it affect your life? Protests in the Middle East last year made fuel supplies seem unstable, allowing producers to raise gas prices

  2. Objective: Explain the law of demand; define and use the terms: markets, demand, and quantity demanded Guiding Question: Why do people buy more on Black Friday? 5.1: Introduction to Demand

  3. Important Terms: Markets • A market exists when people come together to buy and sell • The buying side of any market is called the demand • The selling side of any market is called the supply In the Housing market, people buy and sell residential properties

  4. Important Terms: Demand • Demand is both the willingness and ability to buy a good or service • Willingness: Do I want to have it? • Ability: Can I afford to buy it?

  5. Important Terms: Quantity Demand • Quantity demanded (Qd) is the number of a good purchased at a specific price

  6. The Law of Demand • The Law of Demand says that when the price of a good goes up, the quantity demanded for that good goes down. • And, when the price of a good goes down, the quantity demanded goes up. This graphs shows that when P goes up, Qd goes down

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