Bellringer on the ½ sheet

1. What is the most expensive item you have ever purchased?

2. Assume I gave you a $50 Subway giftcard, how many footlong sandwiches would you buy

during the week at the following prices:

Price FootlongsPrice Footlongs

$1.00 $1.00 $2.00 $2.00 $5.00 $5.00 $7.00 $7.00 $9.00 $9.00

Add up your table

#3 Add up the sandwiches at your table and fill in the numbers

Price FootlongsPrice Footlongs

$1.00 $1.00 $2.00 $2.00 $5.00 $5.00 $7.00 $7.00 $9.00 $9.00

Lets graph one table’s answersTitle _________________

Do an OPTIC for this graph

Who sets the prices of goods/services in the US?

Demand• Supply/Demand

• Let’s look at Demand First• Demand = how much a

consumer values a good or service during a certain time

• in other words, how much are customers willing to pay

Demand Schedule CookiesPrice Quantity Demanded/Day

$0.50 5$1.00 4$1.50 3$2.00 2$2.50 1$3.00 0

Demand Schedule

CookiesPrice QD*Day

$0.50 5$1.00 4$1.50 3$2.00 2$2.50 1$3.00 0

$

Quantity

(0,3)

(1,2.5)

(2, 2)(3,1.5)

(4, 1)

(5, .5)

The Demand Curve

You try one

Widget Demand Schedule

Price QuantityDemanded

5 10

4 17

3 26

2 38

1 53

D

Law of DemandLaw of Demand: As price declines, quantity demanded

increases. As price increases, quantity demanded decreases

Law of Demand: P Therefore Q demand P Therefore Q demand

Demand curve always slopes down

Law of Demand at work• Goods/Services that price changes cause

changes in quantity demanded• Half price, “buy one, get one free”

D

D

Demand Curve Experiment

1. Conduct a demand curve experiment2. Choose 1 good (snickers bars, monster drinks,

movie tickets, takis bags, AZ ice tea, “5” packs of gum or Hershey bars)

3. Make up 5 price points and a time period4. Survey 5 people and find out their demand per week

(write their names)5. Graph the total demand on a correctly labeled graph6. Write an explanation of how the experiment shows

the law of demand in action AND how a company might use this information