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Mr. Ostman |
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Classwork
Complete the following lesson by logging on to: http://www.e-connections.org/lesson7/lesson7.html Read and follow all directions. Write all your answers on this paper. Part 1 What does quantity demanded mean? answer Use the demand schedule for bubble soda to answer these questions about quantity demanded. What is the quantity demanded at a price of $1.00?
What is the quantity demanded at a price of $.25
As price goes down, what happens to the quantity demanded?
As price goes up, what happens to the quantity demanded?
Remember the relationship between price and quantity demanded is inverse and is called the Law of Demand. Demand is the relationship between various prices and the quantities consumers are willing and able to buy during some time period, holding all other things constant. Demand is not a single price and quantity demanded from the schedule. Demand is the entire schedule. The demand schedule can also be displayed as a graph. Use the demand graph for Bubble Soda to answer these questions. What does the demand curve look like? answer Why is the curve downward sloping? answer What is the one factor that resulted in consumer tastes for Bubble Soda to change? answer Why are consumers willing and able to buy more of a product at a lower price? answer Answer the two questions using the demand graph for skateboards. Amount demanded at $80? Amount demanded at $40? Part 2 Using the graph in part 2, answer the 3 questions What are the quantities demanded at each point? What is the difference between demand curve D1 and D2?
Part 3 What could cause a change in the quantity demanded at each and every price? The factors that cause this type of change are called nonprice determinants. Non price determinants include:
Draw the new demand curve below with the given determinant after you answer the below this graph on your computer..
Skip part 4 Closure In this lesson you have reviewed the law of demand and how price changes affect the amount of a good or service consumers are willing and able to buy. You also learned about the nonprice determinants of demand. Nonprice determinants result in a change in demand. A change in demand means that the amount consumers are willing and able to buy changes at each and every price. Nonprice determinants are sometimes called demand shifters.
Schools across the country stop using textbooks. Demand for textbooks will decrease.
A law is passed guaranteeing students ages 10 and older a minimum allowance of $25.00 per week. Demand for compact discs will decrease.
Doctors have excellent results using vitamin E to cure acne. Demand for Vitamin E will decrease.
The price of Bubble Soda drops. The drop in price has no effect on demand for Bubble Soda.
The price of Bola Cola (a substitute for Bubble Soda) increases. Demand for Bubble Soda will increase.
If the price of peanut butter (a complement for jelly) increases, the demand for jelly will decrease.
Which of the following would result in an increase in demand? Select all that apply.
For each headline below, determine if there will be a change in demand or quantity demanded in the identified market and if this change will result in an increase or decrease in demand or quantity demanded. Pete's Pizzeria increases the price for a small pizza.
Will the quantity demanded:
Gasoline Prices Rise
Will the quantity demanded:
Consumers lose weight by eating jelly beans.
Hamburger goes on sale.
Will the quantity demanded:
Assessment Activity: 1. Why do businesses advertise their products? Extension Activities:
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