Changes in Demand Demand Curves shift in response

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Changes in Demand • Demand Curves shift in response to the following factors: –

Changes in Demand • Demand Curves shift in response to the following factors: – Tastes: changes in preference or popularity of product/ service changes in the number of consumers – Income: changes in consumers’ income – Related goods: compliments and substitutes – Expectations: changes in what consumers expect to happen in the future – Size of Market (# of): changes in the number of consumers • TIRES: factors that shift the demand curve

Supply Shifters Cost of inputs Government Policies o. Taxes o. Regulations o. Subsidies Number

Supply Shifters Cost of inputs Government Policies o. Taxes o. Regulations o. Subsidies Number of Firms Technology Natural Disasters and Weather Expectations about Future Prices

Wednesday, 5/13/15, Day 1 Essential Skill: DEMONSTRATE UNDERSTANDING of CONCEPTS 1 -Test: Friday, 5/15

Wednesday, 5/13/15, Day 1 Essential Skill: DEMONSTRATE UNDERSTANDING of CONCEPTS 1 -Test: Friday, 5/15 [Modules: 10 -11, 13 -14, 16 -17, 18 ] 2 -Module 18 notes [pages: 205 -209] • Due: Tomorrow 3 -Supply and Demand: Single and Double Shifts

INCREASE IN DEMAND An increase in demand = increase in PRICE and QUANTITY.

INCREASE IN DEMAND An increase in demand = increase in PRICE and QUANTITY.

DECREASE IN DEMAND A decrease in demand = decrease in PRICE and QUANTITY.

DECREASE IN DEMAND A decrease in demand = decrease in PRICE and QUANTITY.

INCREASE IN SUPPLY An increase in supply = decrease in PRICE and an increase

INCREASE IN SUPPLY An increase in supply = decrease in PRICE and an increase in QUANTITY.

DECREASE IN SUPPLY A decrease in supply = increase in PRICE and a decrease

DECREASE IN SUPPLY A decrease in supply = increase in PRICE and a decrease in QUANTITY.

Summary of Single Shifts 1 -If Demand Increases, then Price Increases and Quantity Increases

Summary of Single Shifts 1 -If Demand Increases, then Price Increases and Quantity Increases 2 -If Demand Decreases, then Price Decreases and Quantity Decreases 3 -If Supply Increases, then Price Decreases and Quantity Increases 4 -If Supply Decreases, then Price Increases and Quantity Decreases

Single Supply and Demand Shift Practice Respond to Scenarios 1 -4 on the Supply

Single Supply and Demand Shift Practice Respond to Scenarios 1 -4 on the Supply and Demand Shift Sheet [6. 17. 1]

CHANGES IN BOTH SUPPLY AND DEMAND If supply and demand decrease by the same

CHANGES IN BOTH SUPPLY AND DEMAND If supply and demand decrease by the same amount, price will be unchanged and the quantity will decrease.

CHANGES IN BOTH SUPPLY AND DEMAND If supply increases and demand decreases, the price

CHANGES IN BOTH SUPPLY AND DEMAND If supply increases and demand decreases, the price will decrease and the quantity will not change.

Summary of Double Shifts 1 -If Demand Increases, and Supply Increases then Price is

Summary of Double Shifts 1 -If Demand Increases, and Supply Increases then Price is Unknown and Quantity Increases 2 -If Demand Increases, and Supply Decreases then Price Increases and Quantity is Unknown 3 -If Demand Decreases, and Supply Decreases then Price Unknown and Quantity Decreases 4 -If Demand Decreases, and Supply Increases then Price Decreases and Quantity Is Unknown

Double Shifts of Supply and Demand Respond to Scenarios 1 -4 on the Double

Double Shifts of Supply and Demand Respond to Scenarios 1 -4 on the Double Shifts Sheet [6. 17. 2]

Create one single shift and one double shift scenario. Name the shifter or shifters

Create one single shift and one double shift scenario. Name the shifter or shifters for both scenarios. • Graph your scenarios including: • Supply and Demand curves • Initial and new equilibriums • Price and quantity change