1 / 7

Explain: Understand : Create : Interpret :

Unit 2 “ How Markets Work” (pp. 76) Chapter 4 “Demand” (pp.78) Section 1 “Understanding Demand” PREVIEW OBJECTIVES (pp. 79). Explain: Understand : Create : Interpret :

ignatius-dayton
Download Presentation

Explain: Understand : Create : Interpret :

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unit2 “How Markets Work” (pp. 76)Chapter4“Demand” (pp.78)Section1“Understanding Demand” PREVIEW OBJECTIVES(pp. 79) Explain: Understand: Create: Interpret: SECTION FOCUS:According to the law of demand, people buy less of a good when its price rises. Demand schedules and demand curves illustrate how people and markets react to different prices.

  2. KEY TERMS: • Demand: • Law of Demand: • Substitution effect: • Income effect: • Demand schedule: • Market Demand Schedule: • Demand curve: Copy Figures 4.1 Law of Demand4.2, 4.3, 4.4, 4.5. 4.2 Building the Law of Demand 4.3 Demand Schedules 4.4 Ashley’s Demand Curve 4.5 Market Demand Curve

  3. Section2“Shifts of the Demand Curve” PREVIEW OBJECTIVES(pp. 85) • Understand: • Identify: • Explain: SECTION FOCUS Several factors can change the demand for a good at any price. A change in demand causes the entire demand curve to shift to the left or right. Understand:

  4. KEY TERMS: • Ceteris paribus: • Normal good • Inferior good • Complements: • Substitutes: Copy Figure 4.6 Graphing Changes in Demand

  5. Section3“Elasticity of Demand” PREVIEW OBJECTIVES(pp. 90) • Explain: • Identify: • Explain: SECTION FOCUS Elasticity of demand describes howconsumers will react to a change in the price of a good. Their reaction depends on the original price of the good and the way that good is used by consumers.

  6. KEY TERMS: • Elasticity of demand: • Inelastic: • Elastic: • Unitary elastic: • Total revenue: CopyFigure 4.7 Elasticity of Demand (Formulas only) Elasticity =Percentage Change in Quantity Demanded/ Original Number Percentage Change = Original Number – New Number x 100 / Original Number

  7. Copy Figure 4.9 Elasticity and Revenue(pp. 96)

More Related