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Microeconomics

Microeconomics. Warm Up : What does it mean to DEMAND Pringles?. Draw & Complete the table with your group mates for Pringles Demand then Graph. How many would you demand at each price?. SETTING UP YOUR GRAPH. Price. $2. $1. $.75. $.50. $.25. 0. Quantity DEMAND.

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Microeconomics

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  1. Microeconomics Warm Up: What does it mean to DEMAND Pringles?

  2. Draw & Complete the table with your group mates for Pringles Demand then Graph. How many would you demand at each price?

  3. SETTING UP YOUR GRAPH Price $2 $1 $.75 $.50 $.25 0 Quantity DEMAND Connect dots and label each line

  4. Demand Schedule & Curve • Demand Schedule: the listing, or chart,showing the quantity demanded at all possible prices in the market. • Demand Curve: the graph showing the quantity demanded at every price in the market

  5. Understanding Demand After you graph: What do you think the Law of Demandstates? LAW OF DEMAND- As the PRICE of an item goes UP the QUANTITY DEMAND goes DOWN or if the PRICE goes DOWN the QUANTITY DEMANDwill go UP.

  6. Understanding DemandLook at the graph • What type of relationship does price have to quantity demand? Demand has a INVERSE,INDIRECT, or OPPOSITE relationship.

  7. Understanding Demand Do your curves and schedules follow the law of demand? Explain. • What always goes on the X axis? • What always goes on the Yaxis?

  8. Market Demand • Look up and define this in your notebook – HIGHLIGHT what you think is important! • Then figure out the Market Demand Schedule for your group. MARKET DEMAND- is the TOTAL quantity demanded for All consumer at each and every price.

  9. Recopy Chart in Notebook

  10. Let’s Graph the Chart Price $5 4 3 2 1 Caleb Timmy Sally 0 3 6 9 12 15 Quantity

  11. Why are their demands different? • Why might Timmy demand less lattes than Sally? • Why might Caleb demand more lattes than both of them?

  12. DEMAND SHIFT RULES • When demand for a product INCREASES, the entire curve shifts ______________. • When demand for a product DECREASES, the entire curve shifts _______________. RIGHT LEFT

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