Demand ReviewDo NOT waste the white board pen!

Make sure your Group # is clearly shown on your Dry-Erase Board at all times

Tomorrow’s test will NOT be multiple choice. It will beShort-answer and graphing!!!!!

Demand Schedule

Draw a demand schedule at price intervals of every 20 cents beginning at sixty cents and ending at $2.00. For quantity purchased, do intervals of 2 units beginning with zero and ending at 14. Make sure it follows the Law of Demand!

Using Half the Dry-Erase Board. . .

Demand CurveUsing your demand schedule,

on the other half of your Dry-Erase Board, draw your demand curve at those intervals.

Marginal Utility Explain what marginal utility is Explain what the law of diminishing

marginal utility is

Determinants of DemandList these major determinants

of demand In Times Past Really Good (there are two types of related goods)

For each, write down an example and be able to explain it

Determinants of DemandList these major determinants of

demandWhiteBeansExisted

For each, write down an example and be able to explain it

Demand Graph - Decrease

Draw a demand graph showing the appropriate shift if demand decreases. Title in large letters, “Decrease in Demand”

Using Half the Dry-Erase Board. . .

Demand Graph - Increase

Draw a demand graph showing the appropriate shift if demand increases. Title in large letters, “Increase in Demand”

Using The Other Half the Dry-Erase Board. . .

ElasticityExplain what we mean when we

say that a product’s demand is price elastic

Provide an example and explain

Draw a graph that show’s a product’s demand is price elastic

InelasticExplain what we mean when we say

that a product’s demand is price inelastic

Provide an example and explain

Draw a graph that show’s a product’s demand is price inelastic

3 Characteristics of products that would have inelastic demand

3 Characteristics of products that would have elastic demand

Changing Income – Inferior goods

If income goes

Demand goes ?

What are Inferior Goods?

Write the formula that is used to determine Price Elasticity of Demand?

Elastic, Inelastic or Unitary

Elastic, Inelastic or Unitary? % change in price

= 10 % change in quantity demanded = 10

Elastic, Inelastic or Unitary% change in price =

25% change in quantity demanded

= 5

Elastic, Inelastic or Unitary% change in quantity demanded = 20

% change in price= 10

Changing AttitudesIf attitude towards a product declines ( )

Demand will go ?

Changing Price of Substitute Products

If price of butter goes down ( )

The demand for margarine will go ?

Changing Price of Complementary Products

If the price of hamburger patties goes up ( )

The demand for hamburger buns goes ?

Write the 3 important Components of Demand

Demand Graph

Hold up the graph that red or yellow created that will represent the effect an increase in price of Sprite will have on 7up.