Download Econ-Demand - Liberty Union High School District

WARM UP
•WHAT DO YOU ALREADY KNOW ABOUT THE
LAW OF SUPPLY AND DEMAND?
•IN WHAT WAYS HAVE WE SEEN THIS LAW OF
SUPPLY AND DEMAND PLAYED OUT IN CLASS?
HOMEWORK: COMMUNITY SERVICE
PROJECT PROPOSAL
• WRITE 1 PARAGRAPH ON WHAT YOU PROPOSE TO DO FOR COMMUNITY
SERVICE. BE SURE TO INCLUDE:
1. THE TYPE OF COMMUNITY SERVICE YOU ARE DOING
2. WHO YOUR COMMUNITY SERVICE SUPERVISOR IS
3. WHERE YOU ARE DOING THE COMMUNITY SERVICE
4. WHY YOUR COMMUNITY SERVICE IS IMPORTANT
LEARNING OBJECTIVES
•ANALYZE HOW DEMAND IMPACTS ECONOMICS
•ENGAGE IN KINESTHETIC LEARNING
•BUILD CONNECTIONS TO YOUR LIFE
LOOKING AHEAD: QUIZ NEXT WEEK
•START STUDYING
TODAY!!!
ANALYZING DEMAND
• DEMAND: DESIRE TO OWN SOMETHING AND THE ABILITY TO PAY FOR IT
• LAW OF DEMAND: CONSUMERS BUY MORE OF A GOOD WHEN ITS PRICE DECREASES
AND LESS WHEN ITS PRICE INCREASES
• SUBSTITUTION EFFECT: WHEN CONSUMERS REACT TO AN INCREASE IN A GOOD’S PRICE
BY CONSUMING LESS OF THAT GOOD AND MORE OF OTHER GOODS
• INCOME EFFECT: CHANGE IN CONSUMPTION RESULTING FROM A CHANGE IN INCOME
MAKE THAT MONEY: ELIMINATE THE
COMPETITION
• WRITE A 1-PARAGRAPH SCENARIO IN WHICH YOU BECOME A COMPETITOR FOR
PRODUCING A GOOD THAT YOU THINK IS OVERLY PRICED
• YOUR SCENARIO HAS TO DEMONSTRATE THE LAW OF DEMAND, SUBSTITUTION, AND
INCOME EFFECTS
• YOU HAVE TO EXPLAIN WHY YOU ARE GOING TO BE MAKING MONEY IN THIS SCENARIO
• YOU NEED 5 GRAPHICS OR IMAGES TO HELP EXPLAIN THE SCENARIO YOU HAVE
CREATED
DEMAND SCHEDULE
• MARKET DEMAND SCHEDULE: A TABLE THAT LISTS THE QUANTITY OF A
GOOD ALL CONSUMERS IN MARKET WILL BUY AT EACH DIFFERENT PRICE
• INDIVIDUAL DEMAND SCHEDULE: TABLE THAT LISTS THE QUANTITY OF A
GOOD THAT ONE PERSON WILL BUY AT EACH PRICE
• UNDER YOUR PARAGRAPH, CREATE AN INDIVIDUAL DEMAND SCHEDULE
AND A MARKET DEMAND SCHEDULE FOR THE GOOD THAT YOU ARE
PRODUCING
BIGGIE’S INDIVIDUAL DEMAND SCHEDULE
Price of Dog Treats
Quantity Demanded Per Day
$1.00
5
$2.00
4
$3.00
3
$4.00
2
$5.00
1
$6.00
0
BIGGIE INC.’S MARKET DEMAND SCHEDULE
Price of Dog Treats
Quantity Demanded Per Day
$1.00
300
$2.00
250
$3.00
200
$4.00
150
$5.00
100
$6.00
50
CHECK FOR UNDERSTANDING
• WHAT IS THE DIFFERENCE BETWEEN AN INDIVIDUAL AND MARKET SCHEDULE?
• WHICH ONE WOULD FALL UNDER MACROECONOMICS AND WHICH ONE WOULD
FALL UNDER MICROECONOMICS?
• WHY DO YOU THINK THERE IS LESS DEMAND FOR THE HIGHER PRICED
PRODUCTS?
• WHAT DOES THIS TELL BIGGIE ABOUT HIS SUPPLY OF DOG TREATS?
CREATE AN INDIVIDUAL AND MARKET
DEMAND CURVE
•DEMAND CURVE: A GRAPHIC REPRESENTATION OF A DEMAND
SCHEDULE
EXIT TICKET
•WHAT HAPPENS TO THE DEMAND OF GOODS
WHEN PRICES GO UP?
•WHICH IS MORE BENEFICIAL TO A BUSINESS
OWNER: INDIVIDUAL OR MARKET SCHEDULE?
WHY?
TIME TO WORK ON STUDY
GUIDES/HOMEWORK
•USE THIS IN-CLASS TIME TO WORK ON
COMPLETING YOUR STUDY GUIDE OR
WRITING YOUR COMMUNITY SERVICE
PROJECT PROPOSAL
WARM UP
•HOW DOES THE PRICE OF A GOOD IMPACT
DEMAND?
•WHAT OTHER FACTORS COULD IMPACT THE
DEMAND OF A GOOD OTHER THAN PRICE?
HOMEWORK: COMMUNITY SERVICE
PROJECT PROPOSAL
• WRITE 1 PARAGRAPH ON WHAT YOU PROPOSE TO DO FOR COMMUNITY SERVICE.
BE SURE TO INCLUDE:
1. THE TYPE OF COMMUNITY SERVICE YOU ARE DOING
2. WHO YOUR COMMUNITY SERVICE SUPERVISOR IS
3. WHERE YOU ARE DOING THE COMMUNITY SERVICE
4. WHY YOUR COMMUNITY SERVICE IS IMPORTANT
LEARNING OBJECTIVES
•ANALYZE THE FACTORS THAT IMPACT DEMAND
•ENGAGE IN COLLABORATIVE LEARNING
•INTERPRET DEMAND VOCABULARY
LOOKING AHEAD
•QUIZ NEXT WEEK
FACTORS THAT CAN CHANGE THE DEMAND
OF A GOOD
• PRICE
• INCOME
• CONSUMER EXPECTATIONS ABOUT THE FUTURE
• POPULATION/DEMOGRAPHICS
• CONSUMER TASTES AND ADVERTISING: TRENDS, MEDIA, ADVERTISING
CHECK FOR UNDERSTANDING
•RANK THE FACTORS THAT CAN CHANGE THE
DEMAND OF A GOOD FROM MOST IMPACTFUL
TO LEAST IMPACTFUL
•BE READY TO EXPLAIN WHY YOU RANKED THE
FACTORS IN THE WAY THAT YOU DID
CREATE YOUR OWN BUSINESS BASED ON
FACTORS THAT IMPACT DEMAND
• IN A GROUP OF 4-5, CREATE A BUSINESS, AND COME UP WITH A LIST OF AT LEAST FIVE REASONS WHY
THIS WOULD BE A GOOD BUSINESS TO START BASED ON THE FACTORS THAT IMPACT DEMAND
• BE SURE TO INCLUDE HOW THE LAW OF DEMAND IMPACTS YOUR BUSINESS
• BE PREPARED TO EXPLAIN HOW SUBSTITUTION AND INCOME EFFECT IMPACT YOUR BUSINESS
• CREATE A MARKET DEMAND SCHEDULE (GRAPH) FOR YOUR BUSINESS
• INCLUDE AT LEAST 5 GRAPHICS THAT SHOW HOW YOU ARE GOING TO ADVERTISE YOUR BUSINESS
JOURNAL 5: THE SURGING HISPANIC
ECONOMY
• WHAT DO NATIONWIDE STATISTICS, FROM 1990-2003, TELL US ABOUT THE INCOME OF LATINOS?
• WHAT EXAMPLES OF HISPANIC ENTREPRENEURS DOES THE ARTICLE GIVE?
• ACCORDING TO THE ARTICLE, WHY WERE SOME BUSINESSES HAVING TROUBLE SELLING PRODUCTS TO THE
HISPANIC MARKET?
• THIS ARTICLE FOCUSES ON CHARLESTON, S.C.- DO YOU THINK IT WOULD BE DIFFERENT IF THE AUTHOR
FOCUSED ON CALIFORNIA? WHY OR WHY NOT?
• WHICH DEMAND FACTOR DO YOU THINK IS MOST IMPORTANT WHEN CONSIDERING THE ECONOMIC CHANGES
AS A RESULT OF INCREASING HISPANIC CONSUMERS, PRODUCERS, EMPLOYEES, AND EMPLOYEES?
NORMAL AND INFERIOR GOODS
•NORMAL GOOD: GOOD THAT CONSUMERS DEMAND MORE OF WHEN
THE INCOME OF THE CONSUMER INCREASES
•INFERIOR GOOD: GOOD THAT CONSUMERS DEMAND LESS OF WHEN
THE INCOME OF THE CONSUMER INCREASES
•CREATE A LIST OF 5 GOODS THAT YOU WOULD CONSIDER NORMAL
AND INFERIOR GOODS
COMPLEMENTS AND SUBSTITUTES
•COMPLEMENTS: TWO GOODS THAT ARE BOUGHT AND USED
TOGETHER
•SUBSTITUTES: GOODS USED IN PLACE OF ONE ANOTHER
•CREATE A LIST OF 3 GOODS THAT WOULD BE CONSIDERED
COMPLEMENTS AND 3 GOODS THAT WOULD BE CONSIDERED
SUBSTITUTES
EXIT TICKET
•WHAT FACTORS CAN IMPACT
THE DEMAND OF A GOOD?
WARM UP
•LIST 5 GOODS THAT YOU NEED ON A DAILY
BASIS
•WHAT WOULD HAPPEN IF THE PRICE OF THE
GOOD DOUBLED? TRIPLED? QUADRUPLED?
HOMEWORK
• WRITE 1 PARAGRAPH ON WHAT YOU PROPOSE TO DO FOR COMMUNITY
SERVICE. BE SURE TO INCLUDE:
1. THE TYPE OF COMMUNITY SERVICE YOU ARE DOING
2. WHO YOUR COMMUNITY SERVICE SUPERVISOR IS
3. WHERE YOU ARE DOING THE COMMUNITY SERVICE
4. WHY YOUR COMMUNITY SERVICE IS IMPORTANT
LEARNING OBJECTIVES
•ENHANCE PUBLIC SPEAKING SKILLS
•ENGAGE IN ARTISTIC EXPRESSION
•BUILD CONNECTIONS TO YOUR OWN LIFE
LOOKING AHEAD
•QUIZ NEXT WEEK
HOMEWORK SHARING
•EACH PERSON WILL PRESENT THEIR COMMUNITY
SERVICE PROJECT PROPOSAL TO THE CLASS
•ALL CLASSMATES WILL RECORD WHO IS DOING WHAT
PROJECT
•REMEMBER GOOD PUBLIC SPEAKING SKILLS (ENGAGING
VOICE, PACING, LOOKING AT AUDIENCE)
ELASTICITY AND DEMAND
•ELASTICITY OF DEMAND: MEASURE OF HOW CONSUMERS
REACT TO A CHANGE IN PRICE
•INELASTIC: DESCRIBES DEMAND THAT IS NOT VERY
SENSITIVE TO A CHANGE IN PRICE
•ELASTIC: DESCRIBES DEMAND THAT IS VERY SENSITIVE
TO A CHANGE IN PRICE
ARTISTIC EXPRESSION
•FOR EACH OF THE FOLLOWING TERMS, CREATE A DRAWING TO
SHOW WHAT THEY MEAN:
1. ELASTIC
2.INELASTIC
3.ELASTICITY OF DEMAND
BRAINSTORMING
•WHAT FACTORS CAN YOU NAME THAT
WILL AFFECT THE ELASTICITY OF A
GOOD?
FACTORS THAT AFFECT ELASTICITY
•1. AVAILABILITY OF SUBSTITUTES
•2. IMPORTANCE
•3. NECESSITIES VS. LUXURIES
•4. PRICE CHANGES OVER TIME
CHECK FOR UNDERSTANDING
•WHAT GOODS CAN YOU THINK OF THAT USED TO BE LUXURIES
BUT ARE NOW CONSIDERED NECESSITIES?
•HOW HAS THIS CHANGE OVER TIME IMPACTED THE ELASTICITY
OF THESE GOODS?
•WHAT IS ETHICS? HOW COULD DEMAND BECOME AN ETHICAL
ISSUE?
TOTAL REVENUE
• TOTAL REVENUE: THE TOTAL AMOUNT OF MONEY A FIRM RECEIVES BY SELLING GOODS OR SERVICES
• THINK ABOUT THE FOLLOWING PRODUCERS: WHICH CAN EXPECT A REVENUE INCREASE FROM HIGHER PRICES
AND WHICH CAN EXPECT A REVENUE DECREASE FROM HIGHER PRICES. BE READY TO EXPLAIN WHY YOU THINK
THIS:
1.
2.
3.
4.
PHARMACEUTICAL COMPANIES
ENTERTAINMENT SOFTWARE COMPANIES
PG&E
SPORTSWEAR MANUFACTURER
EXIT TICKET
•WHAT IS ELASTICITY AND WHAT
ROLE DOES IT PLAY IN
ECONOMICS?
QUIZ REVIEW SHEET
•FILL OUT THE QUIZ
REVIEW SHEET