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Title: Market System 1: Demand
Answer this: What is a product that you personally really love that other people might not care about much? What makes you love it?
The Market System
EQ: What role does demand play in the market?
The Market System
Demand represents the consumer (buyers) side of the market.
Demand: the amount of a good or service people are willing and able to buy at a certain price over a period of time.
�Quantity Demanded: the amount of a good or service people are willing and able to buy at a certain price at a certain time.
�
Price | Quantity |
.50 | 92 |
1.00 | 71 |
1.50 | 56 |
2.00 | 48 |
2.50 | 33 |
This represents market demand for pizza slices..
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Demand curves demonstrate how much of a good or service would be purchased at a given price.
�
Pizza Slices
Changes in price move along the curve and change quantity demanded.
Price Change
$2
$1
5
10
Changes in demand shift the entire curve and change total demand:
�When demand decreases, the curve shifts left.
�
�When demand increases, the curve shifts right.
�
Demand curves shift left and right, not up and down!
��Remember BRIDE:
�Buyers (number of)
Related products
Income of buyers
Desires of consumers
Expectations of price�
What shifts a demand curve?
Buyers �(number of)
Change in buyers due to population change or employment change affects demand similarly.
Related Products
Complements
Demand Up = Other Demand Up
Substitutes
Demand Up = Other Demand Down
NAME IT!
List a complementary and substitute good for the product shown.
Income
When incomes rise in a market, demand usually rises too since people can buy more.
$
$
$
Income
Normal Goods:
Income up,
Demand up
Inferior Goods:
Income up,
Demand down
Desires of Consumers
Desires of Consumers
Usually increase demand for a short time then lead to a massive decrease.
Desires of Consumers
Influencers usually increase demand by recommending products or services but can decrease it by speaking against them.
Desires of Consumers
Expectations
Anticipated price changes lead to immediate demand changes.
Move It, Move it!
Given the information, determine if and how the demand curve for the given product would change. List the BRIDE reason why it would.
Product: Mountain Dew
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Product: Cruises
Product:
Bicycles
Product: Sprite
Product: Josie Maran Cosmetics
Product: Nintendo Switch
Product: Handguns