Small Group Problem Solving Activity Role: Small Focus Group for Target Corporation-NEED ONE PIECE...
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Economics Mr. Kirby CHS Unit 2: Lesson #1: Demand!
Small Group Problem Solving Activity Role: Small Focus Group for Target Corporation-NEED ONE PIECE OF NOTEBOOK PAPER Task: Create a Top 10 List of Trick
Small Group Problem Solving Activity Role: Small Focus Group
for Target Corporation-NEED ONE PIECE OF NOTEBOOK PAPER Task:
Create a Top 10 List of Trick or Treat Candy Items Demanded by
consumers last year during Halloween. Goal: To match my list of Top
10 Trick or Treat Candy demanded (purchased) last year during
Halloween. Reward: People respond to incentives in predictable
ways!: $500 prize per group! JUST KIDDING- From Freakonomics we
know that people would probably cheat then. Prize: Trick or Treat
candy for winning team and all the glory and honor bestowed to you
for a Job well done! Brainstorm a list of twenty items within your
group If you have a list greater than twenty, you must decide as a
group which item (s) to eliminate from your list Match my List:
Total possible score 14 points
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Top 10 Demand for Trick or Treat Candy 2013 Top Ten Trick or
Treat Candy Purchased by consumers at Halloween 2013! 1.Skittles
2.Snickers 3.Starbursts 4.M&Ms 5.Nerds 6.Tootsie rolls 7.Sour
Patch Kids 8.Twizzlers 9.Smarties 10.Candy Corn*
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We will be using Cornell Note Taking Format Today! Smile and
Own the Day! Take one step at a time to Success in Economics
class!
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Unit Two: Learning Objectives: North Clackamas School District
Social Studies Priority Standards: HS.51 (A): Explain how supply
and demand represents economic activity and describe the factors
that cause them to shift.
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Lesson One: Daily Learning Target I Can define and explain in
writing the following key Economic concepts: Law of Demand
Substitution Effect Income Effect
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W hy do roses cost more on V alentine s Day? Why do TV ads cost
more during the Super Bowl ($4 million for 30 sec. ) than during
Nick at Nite reruns? Why do hotel rooms in Sun Valley, Idaho cost
more in the winter than in the summer? Why do surgeons earn more
than butchers ? Why do pro basketball players earn more than pro
hockey players? Why do Christmas lights go on sale December 26 th ?
Why can I pay $40 to see Hall and Oates at the Schnitzer in 2014
When in 1984 it would have cost me $100 at Memorial Coliseum? The
answer to these and other economics questions boil down to the
workings of supply and demand the subject of this chapter. Econ,
Econ
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JO $3 $3 $3 ++ 35 39 26 $3 100 [Total] Bo Mo D D D D = And,
what if the price of this product decreases from $3 to $2? $2 40 $2
45 $2 30 $2 115 A point to point movement on the same D curve is a
Change in QD D2D2D2D2 115 1
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. One out of every 8,000 high school basketball players goes on
to play in the NBA. Scouts looking for rare talents (scarcity) goes
on to play in the NBA. Scouts looking for rare talents
(scarcity)
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.
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Demand A relationship between price and quantity demanded in a
given time period, ceteris paribus.
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What is Demand? Willing and able to purchase a product at a
particular price Willing and able to purchase a product at a
particular price How many of you would like a Porsche [or like
vehicle]? How many of you would like a Porsche [or like vehicle]?
How many of you are able? How many of you are able? Whats the
difference between willing and able? Whats the difference between
willing and able? Idea of time and place at this time, you may be
willing to buy a Porsche, but are not able, therefore you do not
have a DEMAND for a Porsche Idea of time and place at this time,
you may be willing to buy a Porsche, but are not able, therefore
you do not have a DEMAND for a Porsche
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Markets In a market economy, the price of a good is determined
by the interaction of demand and supply.
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Why do we purchase more when a sale occurs?
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Its obvious, isnt it? Consumers love low prices!
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Look at this demand curve. What happens to quantity purchased
as prices rise?
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As price goes down, demand goes up!
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$54321 specifiedtime period a specified time period other
things being equal P QDQDQDQD1020355580 $5$4$3$2$1 D 0 10 20 35 55
80 Quantity Demanded QD how much will be purchased at a specific
price [& date].
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The Demand For Ice Cream Cones Quantity Demanded
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QD 1 QD 1 6,000 6,000. You can have it in any color you want as
long as its black $850 Production went from 6,000 a year to
600,000. $260 QD 2 600,000
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The Law of Demand The law of demand states that consumers buy
more of a good when its price decreases. Conversely, consumers buy
less of a good when its price increases. Consumers love low
prices.
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It really depends on the price, doesnt it?
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The Substitution Effect One reason that the law of demand
exists is the substitution effect. The substitution effect occurs
when a consumer reacts to an increase in a goods price by buying
less of that good and more of a similar yet cheaper good. When the
price of orange juice rises, consumers substitute cheaper apple
juice for orange juice.
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PriceOf 7 UP Demandfor Dr Pepper P D D1D1 D2D2
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Lower prices allow consumers to increase demand. Lower prices
increase consumers purchasing power. This is known as the income
Effect
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The Income Effect The income effect is the change in
consumption resulting from a change in income. The income effect is
the change in consumption resulting from a change in income. In
other words, when prices rise, your money buys less. In other
words, when prices rise, your money buys less. Higher prices reduce
your purchasing power. Higher prices reduce your purchasing
power.
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D. $1 QD 1 QID 2 QD 3 Price QD
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Economists love graphs because graphs provide easy
understanding of economic concepts.
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If a picture is worth a thousand words, a graph is worth even
more.
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A demand schedule records the quantity demanded at various
prices.
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A demand schedule can easily be converted to a demand
curve.
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Demand curve Draw a Demand curve now. With a verical price line
and a horizontal quantity line and a 0 at the axis.
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Now plot out the numbers from this demand Schedule for Sony
Blu-Ray Players at Best Buy.
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Demand curve Draw another Demand curve again. With a verical
price line and a horizontal quantity line and a 0 at the axis.
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Law of Demand Remember: As price falls, the quantity demanded
increases. As the price rises, the quantity demanded decreases PQD
Price For Bruno Mars Ticket at the Moda Center in Portland Quantity
of tickets (in thousands) demanded at the given price $500 $404
$308 $2012 $10 $0 16 20
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TICKETPRICE $50 40 403020100 048121620 Demand for tickets
(thousands) Inverse ( Negative ) Relationship Inverse - 2 variables
move in opposite directions TICKET PRICE (P) 0 4 8 12 16 20 0 4 8
12 16 20 Demand for tickets IN THOUSANDS (Q) $50 40 40 30 30 20 20
10 10 a b c d e a b c f e f d In Economics the independent variable
can be on either axis.
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Finish Freakonomics Reading: Finish Reading Article: Drug
Dealers who live with their Moms! Pick up Reading Questions from
me. Answer questions with a partner and turn into me please.
Finished
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Partner Economic Book Practice: Skim through Unit two: Lesson
One in the economics book (pages 87- 90) Answer questions 1-11 on a
piece of notebook paper and turn directly into me today.