Intro - What trendy items have you seen that
have come and gone in society?
What caused them to arise?
What caused them to disappear?

Quantities of a particular good or service that
people are willing and able to buy at different
possible prices.

Consumers buy more of a good when its price
decreases and less of a good when its price
increases.

What caused this shift in demand?

Is this reliable if you are starting a business?

How can we better guarantee a successful
business?
Demand
Schedule
Price
Quantity
Demanded
$5
10
$4
20
Draw this large
in your notes
Price of Cereal
$5
4
3
2
$3
30
$2
50
1
$1
80
o
10
20
30
40
50
60
70
80
Q
Quantity of Cereal
6
Demand
Schedule
Price
Quantity
Demanded
$5
10
$4
20
Price of Hula Hoops
$5
4
3
2
$3
30
$2
50
1
$1
80
o
Demand
10
20
30
40
50
Quantity of Cereal
60
70
80
Q
7
Changes in Income (the income effect)
1.
1.
Examples?
Prices or availability of substitutes (The
substitution effect)
2.

A substitute is a good/service that can be used in
place of another.

Prices or availability of complementary goods.

Complimentary goods are things that are often sold
or used together.

Changes in the number of buyers.

Changes in preference, tastes, and technology.


Work on Unit 2 Assignments Sheet
Extra credit if complete with portion 1 by
Tuesday.