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# Tue law of demand

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### Tue law of demand

1. 1. 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
2. 2. 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
3. 3. Lets graph one table’s answers Title _________________ Do an OPTIC for this graph
4. 4. Who sets the prices of goods/services in the US?
5. 5. 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
6. 6. Demand Schedule Cookies Price Quantity Demanded/Day \$0.50 5 \$1.00 4 \$1.50 3 \$2.00 2 \$2.50 1 \$3.00 0
7. 7. Demand Schedule Cookies Price 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
8. 8. You try one Widget Demand Schedule Price Quantity Demanded 5 10 4 17 3 26 2 38 1 53 D
9. 9. Law of Demand Law 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
10. 10. Law of Demand at work • Goods/Services that price changes cause changes in quantity demanded • Half price, “buy one, get one free”
11. 11. D
12. 12. D
13. 13. Demand Curve Experiment 1. Conduct a demand curve experiment 2. 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 period 4. Survey 5 people and find out their demand per week (write their names) 5. Graph the total demand on a correctly labeled graph 6. Write an explanation of how the experiment shows the law of demand in action AND how a company might use this information