Date post: | 20-Feb-2017 |
Category: |
Business |
Upload: | travis-klein |
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Bellringer on the ½ sheet
1. What is the most expensive item you have ever purchased?
2. Assume I gave you a $50 Subway giftcard, how many footlong sandwiches would you buy
during the week at the following prices:
Price FootlongsPrice Footlongs
$1.00 $1.00 $2.00 $2.00 $5.00 $5.00 $7.00 $7.00 $9.00 $9.00
Add up your table
#3 Add up the sandwiches at your table and fill in the numbers
Price FootlongsPrice Footlongs
$1.00 $1.00 $2.00 $2.00 $5.00 $5.00 $7.00 $7.00 $9.00 $9.00
Lets graph one table’s answersTitle _________________
Do an OPTIC for this graph
Who sets the prices of goods/services in the US?
Demand• Supply/Demand
• Let’s look at Demand First• Demand = how much a
consumer values a good or service during a certain time
• in other words, how much are customers willing to pay
Demand Schedule CookiesPrice Quantity Demanded/Day
$0.50 5$1.00 4$1.50 3$2.00 2$2.50 1$3.00 0
Demand Schedule
CookiesPrice QD*Day
$0.50 5$1.00 4$1.50 3$2.00 2$2.50 1$3.00 0
$
Quantity
(0,3)
(1,2.5)
(2, 2)(3,1.5)
(4, 1)
(5, .5)
The Demand Curve
You try one
Widget Demand Schedule
Price QuantityDemanded
5 10
4 17
3 26
2 38
1 53
D
Law of DemandLaw of Demand: As price declines, quantity demanded
increases. As price increases, quantity demanded decreases
Law of Demand: P Therefore Q demand P Therefore Q demand
Demand curve always slopes down
Law of Demand at work• Goods/Services that price changes cause
changes in quantity demanded• Half price, “buy one, get one free”
D
D
Demand Curve Experiment
1. Conduct a demand curve experiment2. Choose 1 good (snickers bars, monster drinks,
movie tickets, takis bags, AZ ice tea, “5” packs of gum or Hershey bars)
3. Make up 5 price points and a time period4. Survey 5 people and find out their demand per week
(write their names)5. Graph the total demand on a correctly labeled graph6. Write an explanation of how the experiment shows
the law of demand in action AND how a company might use this information