Download Demand - Gore High School

Demand
WALT: Construct a demand
schedule
Consumers
• A consumer is anyone who buys or uses goods or services
• All of the consumers in your home make up a household
Demand is the quantity of a good or
service that a consumer is willing and
able to purchase.
The law of demand
• As the price increases, the quantity
demanded decreases, vice versa,
ceteris paribus
• Ceteris paribus means everything else is held
constant and only price is allowed to change.
We know in reality you can’t do this but just pretend.
Demand Schedules
• This is a table that shows the quantity of a good or
service a consumer is willing and able to buy at each
price
• A demand schedule must have:
• A title stating who the demand is for, in what time
period and what good is being demanded.
• Price ($) in the left hand column, going from lowest to
highest
• Quantity demanded in the right hand
Demand Schedule Example
TITLE: Lillie’s Demand for chips
per week
Price ($)
Quantity
Demanded
1
5
2
3
3
2
4
1
Workbooks pages 18-21
WALT: Construct a demand curve
from a given schedule
Demand Curve
A curve that shows the quantity demanded of a product
Lillies weekly demand for chips
Price ($)
0
Quantity (Packets of
chips)
Lilly's Demand for Chips
6
Price ($)
5
4
3
2
1
0
1
2
3
Quantity
4
TALL
•
•
•
•
Title
Axis
Labels
Line
• TALL helps us remember the key points to draw an accurate
line graph.
WALT: Show price changes on
a demand curve
Change in the Quantity Demanded
• Price is the only thing that will change the
quantity demanded.
• A change in price moves you along the Demand
curve.
• An increase in price causes a decrease in the
Quantity demanded
• An decrease in price causes an increase in
Quantity demanded
• Price and quantity move in opposite directions
LAW OF DEMAND
As price decreases then
quantity demanded
increases or as price
increases quantity
demanded decreases,
ceteris paribus.
P
$
D
Q
Powerade has
increased from
$1 to $2 - show
the effects on
your graph
Requirements
P2
P1
Q2
Q1
D – dotted lines
A – Arrows (3)
L – Labels (new
and old price,
new and old
Quantity)
Law of Demand
• As price increases from
$1 at P1 to $2 at P2,
the quantity demanded
decreased from 5
bottles per week at Q1
to 3 bottles per week
at Q2.
• This is because
Powerade has become
less affordable for Sam
Workbooks
• Exercises page 28-30