Unit 3

Notebook

10/16

10/23

10/27

10/16 Do Now

What types of product do you buy: The most often? In the largest quantities?

Microeconomics

The area of economics that deals with behavior and decision making by small units, such as individuals and firms.

Utility

Amount of usefulness or satisfaction someone gets through the use of a product

Market Economy

People and firms act in their own best interest to answer the economic questions of what, how and for whom

Businesses need knowledge if demand to decide

Demand The desire, ability, and willingness to buy a

product

Demand Schedule

What happens as the price decreases?

What happens as the price increases?

Demand Curve

You read it from left to right.

Is the demand curve going up or down?

Demand Curve

A graph showing the quantity demanded at each and every price.

Demand Schedule

A listing that shows the various quantities demanded of a particular product at all prices

Demand Curve or Demand Schedule

Demand Curve or Demand Schedule

Law of Demand

As price increases, demand decreases

As price decreases, demand increases

In other words……Price affects demand

Market Demand Curve

Quantity demanded by everyone who is interested in the product.

….in other words, it is not based on one individual but the whole market.

Marginal Utility

Extra usefulness or satisfaction a person gets for buying one more unit of a product.

In other words…..if you buy more, you are more satisfied

Diminishing Marginal Utility

Satisfaction begins to diminish the more you use the product

Which means…….you are not willing to pay as much for the 2nd product

Example a buffet

Create Your Own Demand Schedule

Demand Curve

Choose something you buy often.

You need to include: 5 prices 5 quantities

Chapter 4, Section 2

Changes in Demand

Sample Market: Movies at home

Slow Fade Out for Video Stores

http://online.wsj.com/articles/SB10001424052748704082104575515933391663168

Read Together

Sample Market: Movies at home

1. Draw a timeline of movie rentals based on article

2. Why was Hollywood fearful of movie rentals?

3. Why did the market for video rental develop slowly?

4. Why did the market flourish?

5. Why did consumers turn away from video stores?

YouTube Research

Find a video that talks about the Law of Supply and Law of DEmand.

Cope the link into a google word document

Based on the video define Law of Supply and Law of Demand.

Rate the video on a scale of 1 to 4 on how well it explains the information.

Email or share me your document

Chapter 4, Section 2

Standard: 12.2.2 Discuss the effects of changes in supply and/ or demand on the relative scarcity, price, and quantity of particular products.

Objective: SWBAT apply factors influence change sin demand to changes that have occurred in the movie industry.

10/23 Do Now

What is the Law of Demand?

As price increases, demand decreases

As price decreases, demand increases

Todays Agenda

1. Do Now

2. Quick notes on Change in Demand Quantity

3. Change in Demand Project

4. Notes on Changes in Demand Factors

5. Case Study: McDonalds

Changes in Quantity Demanded

A movement along the demand curve that shows a change in the quantity of the product purchased in response to a change in price.

Income Effect

The change in quantity demanded because of a change in price that alters consumers’ real income.

Substitution Effect

The change in quantity demanded because of the change in the relative price of the product.

Change in Demand

People are now willing to buy different amounts of the product at the same prices.

Change in Demand Factors

Consumer Income

Consumer Taste

Substitutes

Complements

Changes in Expectations

Number of Consumers

Example: Movie Industry Changes

Movie Theatres

Video Cassettes

Movie Rental Stores

DVDs

Netflix

Online Streaming

Redbox and other rental stations

Project: Change in Demand

Explain the relationships between Changes in Demand Factors and changes in the movie industry

Assignment: Change in Demand

1. Read and review the factors on page 95-99

2. Draw Chart

3. Complete chart by explaining how demand changes for the movie industry was affected by a specific factor

Assignment: Change in Demand

Income

Taste

Substitutes

Complement

Expectations

# of Consumers

Movie Industry Change

Reason

Assignment: Change in Demand

Guided Question for Reasons

1. Why did the movie industry change occur?

2. How was it affected by demand?

3. Use the factor vocabulary in your reason

Change in Demand Factors

Consumer Income: Consumer’s money

Consumer Taste: What a consumer likes or does not like

Substitutes: A products that can be used in place of another product

Complements: Goods that are related to another good

Changes in Expectations: The way consumers think about the future of a product

Number of Consumers: Increase in the number of consumers can cause the market demand curve to shift.

Case Study: McDonalds

Read page 100

Answer question 1-4 in your notebook

10/27 Do Now

Self Check Quiz

Link on page 110

Class Work pg 110

1. In Your Notebook: Reviewing Facts Sections 1 and Sections 2

2. In a Google Doc Identifying Key Terms. Type complete answers.

10/29 Do Now

What is a variable?

What is a dependent variable?

What is a independent variable?

OPEN NOTE QUIZ TOMORROW

Elasticity

A measure of responsiveness that tells us how a dependent variable such as quantity responds to a change in an independent variable such as price.

Responsiveness

Demand Elasticity

The extent to which a change in price causes a change in the quantity demanded

Extent

Elastic

When a given change in price causes a relatively larger change in quantity demanded.

Inelastic

A given change in price causes a relatively smaller change in the quantity demanded.

Total Expenditures

The amount that consumers spend on a product at a particular price.

Classwork Pg 107

Numbers 3, 5 and 6