Power Point 1 Microeconomics Supply and Demand Unit

Power Point 1 Microeconomics: Supply and Demand Unit 2 Economics

Essential Question: • Explain the Law of Demand how changes in our society result in shifts in people’s willingness and ability to purchase goods and services. Include the concept of Diminishing Marginal Utility

Crash Course #4 Supply and Demand • Complete the worksheet in your packet that goes with this video – Have a ruler and colored pens/pencils on hand for graphs • https: //www. youtube. com/watch? v=g 9 a. Diz. Jp d_s&t=299 s

DEMAND • Definition – the willingness and ability to purchase goods or services at various prices

DEMAND • Demand Curve – graph showing all the combinations of price and quantity demanded of a particular good or service • Law of Demand – as prices fall, quantity demanded will rise, and as prices rise, quantity demanded will fall. Inverse relationship. Ø A change in the price of a product results in a change in QUANTITY DEMANDED! (it does NOT shift Demand)

Shifts in the Demand Curve #1 • https: //www. youtube. com/watch? v=f. IDDjb. T sh 5 A • Explain the movement along the demand curve using Starbucks consumers

Diminishing Marginal Utility • Successive units of a particular product yield less marginal utility (each additional product consumed brings less satisfaction)

Diminishing Marginal Utility • https: //www. youtube. com/watch? v=KOUJEyy 48 q. Y • Explain Diminishing Marginal Utility using cookies

Demand Schedule • A table/chart listing prices and quantities demanded

Summary: Answer the Essential Question (minimum of five complete sentences): • Explain the Law of Demand how changes in our society result in shifts in people’s willingness and ability to purchase goods and services. Include the concept of Diminishing Marginal Utility