1 25102021 Demand learning objectives By end of
1 25/10/2021 Demand learning objectives By end of the lesson, you should be able to: Describe demand Describe effective demand Calculate revenue from different demands Explain what a demand curve is showing
2 25/10/2021 Starter https: //www. youtube. com/watch? v=RP 0 j 3 Lnla zs From 18 Seconds to 4 min 10 Seconds
3 25/10/2021 Demand The amount that an individual or individuals are willing to buy at any given price. For demand to be meaningful, it has to be backed up by the ability to pay. This is called effective demand. For virtually all products demand increases as price falls and vice versa
4 25/10/2021 What is the overall aim of the business? The overall aim of the business is to make money by: Meeting demand through getting them to try your product and continue to use your product/service. This is called repeat purchase. How can businesses achieve repeat business?
5 25/10/2021 Demand for Mars Bars in a school: Quantity Price Demanded £ 0. 20 £ 0. 25 £ 0. 30 £ 0. 35 £ 0. 40 £ 0. 45 £ 0. 50 400 350 300 250 200 150 100 Revenue
6 25/10/2021 Demand for Mars Bars in a school: Quantity Price Demanded £ 0. 20 £ 0. 25 £ 0. 30 £ 0. 35 £ 0. 40 £ 0. 45 £ 0. 50 400 350 300 250 200 150 100 Revenue £ 80 £ 87. 50 £ 90 £ 87. 50 £ 80 £ 67. 50 £ 50
7 25/10/2021 This is what it looks like on a graph
8 25/10/2021 What does the graph show? • The demand curve is downward sloping because as the price of Mars bars increase, less people are prepared to pay the higher prices, so demand decreases. • This company should therefore think carefully what price to sell their chocolate bars.
How much are you prepared to pay for a Mars Bar? What affects your demand for the product?
10 25/10/2021 Factors affecting demand https: //www. youtube. com/watch? v=Enz 6 z 9 j. G msk 3 min 14 secs Make notes on the factors affecting demand
11 Factors leading to a change in demand: 1. 2. 3. 4. 5. 6. 7. changes in the prices of substitutes and complementary goods changes in consumer incomes fashions, tastes and preferences advertising and branding demographics external shocks seasonality 25/10/2021
12 Homework Cereals demand Q’s Answers This on lined paper please is due on Thursday 8 th October – P 5 25/10/2021
- Slides: 12