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Module 5: Supply and Demand: Introduction and Demand

TOPIC 1.4 \| DEMAND
ENDURING UNDERSTANDING: In a competitive market, demand for and supply of a good or service determine the equilibrium price.
Learning Objective	Essential Knowledge
Define (using graphs as appropriate) the law of demand.	The law of demand states there is an inverse relationship between price and quantity demanded, leading to a downward-sloping demand curve.
Explain (using graphs as appropriate) the relationship between the price of a good or service and the quantity demanded.
Explain (using graphs as appropriate) the determinants of demand.	Factors that influence consumer demand, such as changes in consumer income, cause the market demand curve to shift.

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Where do we see this in the real World?

Identify what is happening to malls across America.
Identify the role that COVID-19 played in the role of the downfall of malls.
Describe the challenges that mall-owning companies face.
Describe what type of ‘mall’ will likely survive in the future.
Bonus: Can you identify a ‘mall’ that’s similar to this? (Hint: think Brookfield… and not Brookfield Square…)

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Demand Curve

Demand SHIFTS (‘Change in demand’)

$ of related goods
Change in income
Change in taste
Change in expectations
Change in # of consumers

Law of Demand =

Negatively Sloping

Change in ‘Quantity Demanded’

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Q_S	Price /10-piece McD’s chicken nugget meal)
300k	$3.50
400k	$4.50
500k	$5.50
600k	$6.50
700k	$7.50
800k	$8.50
900k	$9.50

McDonald’s 6-piece Happy Meal (per day)

$$$

McDonald’s 6-piece Happy Meal (per day)

$9.50
$8.50
$7.50
$6.50
$5.50
$4.50
$3.50

300k	400k	500k	600k	700k	800k	900k

Q_D

Q_D	Price /10-piece McD’s chicken nugget meal)
900k	$3.50
800k	$4.50
700k	$5.50
600k	$6.50
500k	$7.50
400k	$8.50
300k	$9.50

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TOPIC 1.5 \| SUPPLY
ENDURING UNDERSTANDING: In a competitive market, demand for and supply of a good or service determine the equilibrium price.
Learning Objective	Essential Knowledge
Define (using graphs as appropriate) the law of supply.	The law of supply states there is a positive relationship between price and quantity supplied, leading to an upward-sloping supply curve.
Explain (using graphs as appropriate) the relationship between the price of a good or service and the quantity supplied.
Explain (using graphs as appropriate) the determinants of supply.	Factors that influence producer supply, such as changes in input prices, cause the market supply curve to shift.

Module 6: Supply and Demand: Supply and Equilibrium

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Where do we see this in the real World?

What’s happening to the supply of chickens?
What’s happening to the supply of eggs?

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McDonald’s 6-piece Happy Meal (per day)

$$$

McDonald’s 6-piece Happy Meal (per day)

$9.50
$8.50
$7.50
$6.50
$5.50
$4.50
$3.50

300k	400k	500k	600k	700k	800k	900k

Q_S

Q_S	Price /10-piece McD’s chicken nugget meal)
300k	$3.50
400k	$4.50
500k	$5.50
600k	$6.50
700k	$7.50
800k	$8.50
900k	$9.50

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Price /10-piece McD’s chicken nugget meal)
$3.50
$4.50
$5.50
$6.50
$7.50
$8.50
$9.50

McDonald’s 6-piece Happy Meal (per day)

$$$

McDonald’s 6-piece Happy Meal (per day)

$9.50
$8.50
$7.50
$6.50
$5.50
$4.50
$3.50

300k	400k	500k	600k	700k	800k	900k

Q_D

Q_S

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When one curve changes (a shift), the equilibrium will be impacted.

Equilibrium will ‘follow’ by moving along the curve of the other curve.

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What am I looking at?!

Price CEILING

should the actual price be higher or lower than the P_RC?

Note: you can’t ‘bust through the ceiling’ to get to the natural equilibrium price…

Who’s hurt by this?

Who’s helped by this?

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What am I looking at?!

Price FLOOR

should the actual price be higher or lower than the W_MIN?

Note: you can’t ‘bust through the floor’ to get to the natural equilibrium price…

Who’s hurt by this?

Who’s helped by this?

$7.75/hr.*

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