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Understanding Demand Dynamics in Economics

Explore the Law of Demand and its impact on consumer behavior. Learn about shifts in purchasing trends and Diminishing Marginal Utility affecting goods/services. Includes practical exercises and explanatory videos.

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Understanding Demand Dynamics in Economics

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  1. Unit 2 Economics Power Point 1 Microeconomics: Supply and Demand

  2. Essential Question: • Explain the Law of Demand and how changes in our society result in shifts in people’s willingness and ability to purchase goods and services. Include the concept of Diminishing Marginal Utility

  3. Crash Course #4Supply and Demand • Complete the worksheet in your packet that goes with this video • Have a ruler and colored pens/pencils on hand for graphs • https://www.youtube.com/watch?v=g9aDizJpd_s&t=299s

  4. DEMAND • Definition – the willingness and ability to purchase goods or services at various prices

  5. DEMAND • Demand Curve – graph showing all the combinations of price and quantity demanded of a particular good or service • Law of Demand – as prices fall, quantity demanded will rise, and as prices rise, quantity demanded will fall. Inverse relationship. • A change in the price of a product results in a change in QUANTITY DEMANDED! (it does NOT shift Demand)

  6. Shifts in the Demand Curve #1 • https://www.youtube.com/watch?v=fIDDjbTsh5A • Explain the movement along the demand curve using Starbucks consumers

  7. Diminishing Marginal Utility • Successive units of a particular product yield less marginal utility (each additional product consumed brings less satisfaction)

  8. Diminishing Marginal Utility • https://www.youtube.com/watch?v=KOUJEyy48qY • Explain Diminishing Marginal Utility using cookies

  9. Demand Schedule • A table/chart listing prices and quantities demanded

  10. Summary:Answer the Essential Question (minimum of five complete sentences): • Explain the Law of Demand and how changes in our society result in shifts in people’s willingness and ability to purchase goods and services. Include the concept of Diminishing Marginal Utility

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