The document provides information and examples about supply and demand, including defining demand as how much consumers are willing to pay for a good or service. It presents sample demand schedules showing that as price increases, quantity demanded decreases, illustrating the law of demand. Students are then asked to conduct their own demand curve experiment by surveying people at different price points to show the inverse relationship between price and quantity demanded.

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. 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. Lets graph one table’s answers
Title _________________
Do an OPTIC for this graph

5. Who sets the prices of
goods/services in the US?

6. 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

7. 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

8. 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

9. You try one
Widget Demand Schedule
Price
Quantity
Demanded
5 10
4 17
3 26
2 38
1 53
D

10. 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

11. Law of Demand at work
• Goods/Services that price changes cause
changes in quantity demanded
• Half price, “buy one, get one free”

12. D

15. D

17. 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