Name: ________________________________________________________________________________
Microeconomics - Demand
SSEMI2 The student will explain how the Law of Demand, the Law of Supply, prices, and profits work to determine
production and distribution in a market economy.
a. Define the Law of Supply and the Law of Demand.
b. Describe the role of buyers and sellers in determining market clearing price.
c. Illustrate on a graph how supply and demand determine equilibrium price and quantity.
d. Explain how prices serve as incentives in a market economy.
SSEMI3 The student will explain how markets, prices, and competition influence economic behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
b. Explain and illustrate on a graph how price floors create surpluses and price ceilings create shortages.
c. Define price elasticity of demand and supply.
1
Microeconomics
Notes Demand (Ch. 4)
Activator
Three people enter a Mazda dealership all interested in buying a brand new car. All three initially stop to look at the Mazda
RX8. The first person tells the salesperson that they “really like the RX8” but they “don’t have any money today”, and are
“saving their money for a purchase within the next 6 months”. The second person tells the dealer that they “have the
money to buy”, they “are going to ultimately buy RX8”, but they are shopping various dealerships and are “not willing to
buy today”. The third person tells the dealer that they “love the RX8!”, they “have the money” and they “want to buy it
today.”
Answer the following based on the above scenario:
1. Next to each customer, check each of the following that apply to their situation:
Customer
1
2
3
Desire
Willingness
Ability
The Market Forces of Supply and Demand
Understanding Demand
 Demand – ____________________, ability, and _____________________________________ to buy a good/service
o The amount of a product that a ____________________________ (individual) or _____________________
____________________________ (market) will purchase at a given price
 Microeconomics – The study of the economic behavior and decision making ________________________________
______________________________________________________________________________________________
Application Chart – Demand
Make a three column chart that represents 3 items that you want on one side, whether you can afford them or not in the
next, and whether you are willing to buy them in the last.
Desired Item
Willingness
Ability
Demand (Yes or No)
The Law of Demand
 Law of Demand – prices are _________________________, consumers will _____________________________;
prices are ____________________________, consumers will buy ___________________________.
o ____________________________________________ relationship between price and the QD of a product.
o Prices __________________________________________________________________________________
The Income Effect
 Income Effect – the change in __________________________resulting from a _________________________
“more ___________________________________”
 Consumers feel ___________________________ when prices drop, _____________________________ when
prices rise. Both scenarios affect the __________________________________________ of a product.
2
Substitution Effect
 Substitution Effect – when consumers react to an increase in a good’s price by consuming _____________________
______________________________________and _____________________________________________________
The Demand Schedule
 Demand Schedule - a table that lists the _________________________________________________ will purchase
at each price in the market
 Market Demand Schedule - lists the quantity of a good that _____________________________________________
at each price in the market
Application - The Demand Curve
 Demand curve - graphically represents the _______________________________________
• Demand Curve is _________________________________ sloping because of the law of demand
Price
Quantity
$3.00
0
2.50
2
2.00
4
1.50
6
1.00
8
.50
10
.25
12
3.00
2.50
2.00
1.50
1.00
.50
0
1
2
3 4
5 6
7 8
9 10 11 12 13
Movement Along the Demand Curve
• Movement – is caused _____________________________________________________________________
•
Changes the _____________________________________ of a product
3
Demand Curve Assignment
Directions: Answer the following questions using your textbook/notes, and based on your experience as a consumer.
1. Create an individual demand schedule for your consumption of bottled drinks out of a machine per week
(If you don’t drink soda, substitute it for water, Gatorade, etc). Fill in six different quantities demanded based on
the prices below. Then plot the points of your curve on a demand graph. Draw a demand curve for the above
schedule putting price on the `y' (vertical) axis and number of bottles bought on the `x' axis (horizontal).
Price
Bottles Bought
Per Week
3.00
2.50
2.00
1.50
1.00
.50
.25
2. Now ask five of your classmates how many they were willing to buy at each price and record your results:
Price Student Student Student Student Student Totals
1
2
3
4
5
3.00
2.50
2.00
1.50
1.00
.50
.25
4
3. Explain why the curve is downward sloping ________________________________________________
____________________________________________________________________________________
4. Give an example of a time that you experienced the income effect _____________________________
____________________________________________________________________________________
____________________________________________________________________________________
5. Give an example of a time that you experienced the substitution effect __________________________
____________________________________________________________________________________
____________________________________________________________________________________
6. A ____________________________ is a table that lists the quantities of a good/service a person will buy at each
price that may be offered in the market.
7. A ____________________________ is a table that lists the quantities of a good/service all consumers will buy at
each price that may be offered in the market.
8. A ____________________________ is a graphical representation of a demand schedule
9. The __________________________ effect is the change in consumption resulting from a change in price, which
affects a person’s purchasing power
10. The __________________________ effect is the change in consumption resulting from a change in price of a
related product, when a person can replace one item with another.
Application – Changes in Demand
Price
2004
$40
0
35
4
30
6
25
8
20
10
15
12
10
14
40.00
30.00
20.00
10.00
0
2
5
4
6
8
10
12 14
16
18 20
22 24
Determinants of Demand
Determinant
Definition
Example(s)
The ____________________________ a
consumer has can affect their
________________________ to
_____________________ certain items.
Demand for goods can be affected by the
________________________________.
6

Normal good – _____________________

Inferior good – _____________________

Complements - _____________________

Substitutes - _______________________
Determinant
Definition
Example(s)
Changes in the ____________________ of
products, change the
_______________________________ of
the consumer
The way people anticipate
___________________________________
or the ____________________________
An _____________________________/
____________________________________
in the ______________________________
_________________________________
7

Popularity decrease - _________________

Popularity increase - _________________


___________________________________
___________________________________

Increase in population - ______________
__________________________________
Decrease in population - ______________
__________________________________

Determinants of Demand
Demand Application Worksheet
Directions: answer and graph the following
1. Trina Daniels is known around school for being a hip and stylish student. Typically, she purchases her fashionable attire
from Abercrombie and Fitch. However, last weekend Hollister was running a 50% off sale on all winter items in the
store. Trina had $200 dollars that she had earned in allowance money and had the desire and willingness to upgrade
her wardrobe. Instead of shopping at A&F, she made her purchases at Hollister.
a. How did the income effect influence her purchases? __________________________________________________
_____________________________________________________________________________________________
b. How did the substitution effect apply to this scenario? ________________________________________________
_____________________________________________________________________________________________
2. Glynn Academy High School student Dalton Manning is an avid fan of hip-hop music and “gangsta” rap. Dalton owns
over 200 cd’s in his collection, with old-school artists such as Snoop Doggie Dog and contemporary artists such as Lil’
Sneezy. His job as a bus boy at the local pizzeria allows him to buy a certain amount of cds every month. From the local
cd shop He is willing to buy 1 new cd per month at a rate of $20 a unit. To cut costs he visits the local Wal-Mart where
he is willing to buy 3 cds at $12 a unit. He also frequents a used cd shop, where he purchases an average 5 cds at a rate
of $10 per unit and 10 cds at a rate of $5 per unit. Low prices make him a very happy young man.- Create a Demand
Schedule to chart his willingness to purchase cds at varying prices.
Price Per Compact
Disc
Dalton’s Quantity
Demanded
$20
18
16
14
12
10
8
6
4
2
0
8
1
2
3
4
5
6
7
8
9 10 11 12
a. Which way is the curve sloping? Explain why. ________________________________________________
_____________________________________________________________________________________
b. Is a price change reflected as movement along the curve or a shift in the curve? What is the difference?
_____________________________________________________________________________________
3. Inspired by his 12th grade Economics teacher Lester Howard begins shopping at Express for Men. Based on his monthly
income he can afford to buy 1 dress shirt when they are priced at $45. Occasionally, Express for Men runs sales and
prices fluctuate on dress shirts from original price to $10. Understanding the concepts of demand, Lester takes
advantage of the sale prices and increases his rate of consumption. When shirts are priced at $25, he purchases 2.
When they are priced at $20-3, $15-5, and $10-8. This trend continues throughout the school year until the summer
when he increases the amount of hours that he works per week. Subsequently, he increases his income and has the
ability to increase his consumption of Express for Men dress shirts. As a result of his increased revenue stream, he
doubles his purchases per month at every price point.
- Create a Demand Schedule to chart Lester’s initial purchases and his purchases after his increase in income. Then
Plot an individual demand curve based on the above information.
Price Per
Express Shirt
QD during
school year
QD
during summer
$45
40
35
30
25
20
15
10
5
0
1
2
3 4
5
6
7 8
9
10 11 12 13 14 15 16
a. Which way did the curve shift when Lester increased his hours over the summer? ______________________________
b. What allowed him to increase his consumption of Express for Men shirts? ____________________________________
_________________________________________________________________________________________________
c. What does the shift in the curve indicate in this scenario? __________________________________________________
_________________________________________________________________________________________________
9
4. Upon her high school graduation, Phallan Davis receives a job delivering singing telegrams. The job pays relatively well
and she sets up a monthly budget based on her revenue stream. One day while watching C-Span, a commercial for
Guacamole Ice Cream catches her eye. Intrigued by the commercial she runs to the local Publix and purchases a pint of
the ice cream. It was so delicious that she begins buying it consistently. At $10 a pint, she buys 2 pints of Guacamole
Ice Cream per month. As with any new product, Publix runs a sale on ice cream. Phallan increases consumption as the
price drops. She purchases 4 pints of ice cream at $5 a unit and 8 pints at $3 a unit, per month. Later that year, Publix
features a free sample of Salsa flavored ice cream sprinkles with every purchase of Guacamole Ice Cream. Elated by the
prospect of a new flavor, her consumption of pints of ice cream increases by one unit at the same market price.
Unfortunately, a month after the Phallan’s job as a singing telegram was terminated due to excessive customer
complaints. She had expected to lose her job based on all of the negative letters to her manager. As a result, she has to
reduce her consumption of ice cream and her new monthly buying habits fall to 0 pints of ice cream at $10 a unit, 2 at
$5 a unit and 3 pints at $3 a unit, per month.
- Create a Demand Schedule to chart her purchases of Guacamole Ice Cream. Plot an individual demand curve
based on the above information.
$10
Price of
Ice Cream
QD of
Guacamole
Ice Cream
QD
after Salsa
Ad
QD after
Being Fired
9
8
7
6
5
4
3
2
1
0
1 2 3 4 5 6 7 8 9 10
a. What initially made her interested in Guacamole Ice Cream? ____________________________________
_____________________________________________________________________________________
b. Which way did the curve shift after Publix ran the ad for free Salsa flavored sprinkles; what does a shift in that
direction show? _______________________________________________________________________
c. How might the ad for free Salsa affect the sale of Guacamole Ice Cream? _________________________
_____________________________________________________________________________________
d. Which way did the curve shift after her job was terminated; what does a shift in that direction show?
_____________________________________________________________________________________
e. Which of the determinants of demand were utilized in this scenario? Explain how. __________________
_____________________________________________________________________________________
10
Difference Between A Change in Quantity Demanded and a Change in Demand

QD - A change in the amount a consumer will purchase _________________________________________________
o
Ceteris paribus – all other things _______________________, all things
______________________________________
o

Reflected as ________________________________________________
D – A change in the amount a person will buy as a result of an _________________________________ (change in
ceteris paribus - popularity of product, consumer income, etc.), not having to do with _______________________
o
Reflected as a __________________________________
Determinants Videos
Video
Determinants of Demand
Increase or Decrease
Demand
11
Shift of the demand curve
Reasons for Changes in Demand (Ch. 4)
Directions: Answer the following questions using your textbook/notes.
1. Read the eight newspaper headlines below, and use the table to record the impact, if any, of each event on the
demand for beef. B is the original Curve.
Figure 1
B
C
Price
A
Quantity
Headline
1.
Millions of Immigrants Swell
U.S. Population
2.
The Price of a lb. of Beef
Doubles
3.
Consumer Income for U.S.
consumers falls for 3rd straight
month
Surgeon General Warns That
Eating Beef is Hazardous to
Your Health
Price of Beef to Fall Next
Month
4.
5.
6.
Price of Beef to Rise Next
Month
7.
The Price of lb. of Beef falls by
50%
8.
Free Buns With Every lb. of
Beef at Local Publix
Demand
Shift? (Y/N)
Does the curve
shift Left/Right?
Or did it cause
movement along
the curve?
12
Increase/Decrease in
Demand, or Change
in Quantity
Demanded?
New
Curve (A
or C), or
N/A.
Determinant(s) of
Demand (Income,
Population, Price of
Related Product,
Expectations, Tastes)
or Not Applicable.
Elasticity of Demand
Activator
1. List an item that you would buy less of if the price increased
 ______________________________________________________
2. List an item that you would buy more of if the price decreased
 ______________________________________________________
3. List an item that you would continue to buy, even if the increased
 ______________________________________________________
Elasticity of Demand

Elasticity of Demand –how consumers will ____________________________ or ____________________________
their quantity demanded _________________________________________________________________________

Measures the __________________________________________________________________________________

Helps determine how much a ______________________________________________________________________
Elastic Demand

Elastic – consumption changes _____________________________________________________________________

A consumer is __________________________________________________________________________________
Inelastic Demand

Inelastic - changes in price causes a _________________________________________________________________

Consumers continue to ___________________________________________________________________________
Determinants of Demand Elasticity
1. __________________________________________________
• Medicine versus a __________________________________________
2. __________________________________________________
• Pepsi/_______________, Butter/_________________________
3. __________________________________________________
• How much you ____________________________________________
• Table salt versus ____________________________________________
4. __________________________________________________
• Longer time horizon – __________________________________________
• Gas in the short run is ____________________________,
but over time _____________________________
13
Values of Elasticity
 Elasticity has a precise mathematical definition
Percentage change in quantity demanded
Percentage change in price



Value is less than 1, it is considered _________________________________
o Inelastic – ________________________________________
Value is greater than one, demand is _________________________________
o Elastic – ________________________________________
Value is equal to one, demand is __________________________________
o Unitary Elastic – ________________________________________
Computing the Price Elasticity of Demand
 Price elasticity of demand = _____________________________________


Percentage Change in QD – 25%
Percentage Change in Price – 15%
______ = _______ ____________________


Percentage Change in QD – 10%
Percentage Change in Price – 15%
______ = _______ ____________________


Percentage Change in QD – 15%
Percentage Change in Price – 15%
______ = _______ ____________________
The Midpoint Method
Price Elasticity = _____________________________________
Application – Elasticity of Ice Cream Cones
(_______ - ________) /[________ + ________/2]
____________________________________________ = __________
(_______ - ________) /[________ + ________/2]
____________________________________
14
Application – Elasticity of Table Salt
(_______ - ________) /[________ + ________/2]
_________________________________________________ = __________
(_______ - ________) /[________ + ________/2]
____________________________________
(_______ - ________) /[________ + ________/2]
____________________________________________ = __________
(_______ - ________) /[________ + ________/2]
____________________________________
15
Elasticity Application 1
(_______ - ________) /[________ + ________/2]
___________________________________________ = __________
(_______ - ________) /[________ + ________/2]
• Did the price change cause an elastic or inelastic response in the QD ? ______________________________
Elasticity Application 2
(_______ - ________) /[________ + ________/2]
___________________________________________ = __________
(_______ - ________) /[________ + ________/2]
• Did the price change cause an elastic or inelastic response in the QD ? ______________________________
16
Elasticity Application 3 – Apple
(_______ - ________) /[________ + ________/2]
___________________________________________ = __________
(_______ - ________) /[________ + ________/2]
2. Did the price change cause an elastic or inelastic response in the QD for Nano’s? ___________________
3. If the firm drops their price by _________%, they will see an increase in sales of __________%
4. To determine if this is a good decision for the firm, calculate the total revenue of each price:
i. Multiply the first price of the Nano by the first QD – $______ x _______ = ___________________
ii. Multiply the second price of the Nano by the second QD – $ ______ x _______ = ______________
5. Which price point generates the most total revenue? ______________________
Computing the Price Elasticity of Demand
Classifying Elasticity
1. When the price elasticity of demand is greater than one, demand is defined to be ________________________
2. When the price elasticity of demand is less than one, the demand is defined to be ________________________
3. When the price elasticity of demand is equal to one, the demand is said to have _________________________
4. If demand is inelastic, the percentage change in price will be _________________________________than the
percentage change in quantity demanded.
5. If demand is elastic, the percentage change in quantity demanded will be ______________________________ than
the percentage change in price.
6. If demand is unit elastic, the percentage change in price will be ________________________________ to the
percentage change in quantity demanded.
Price Elasticity of Demand = % change in quantity demanded
% change in price
1. The price of ice cream rises by 10 percent and quantity demanded falls by 7 percent. ______/_____ = ______
 Inelastic or elastic __________________________
2. The price of table salt falls by 20 percent and quantity demanded increases by 4 percent. ______/_____ = ______
 Inelastic or elastic __________________________
3. The price of electricity rises by 30 percent and quantity demanded falls by 17 percent. ______/_____ = ______
 Inelastic or elastic __________________________
4. The price of the Hummer falls by 40 percent and quantity demanded increases by 20 percent. _____/_____ = _____
 Inelastic or elastic __________________________
5. The price of Ben and Jerry’s ice cream falls by 10 percent and quantity demanded increases by 40 percent.
______/_____ = ______
 Inelastic or elastic __________________________
17
The Midpoint Method
Midpoint Method = Q2-Q1/(Q2+Q1)/2
P2-P1/(P2+P1)/2
1. The price rises from $4 to $6 and quantity demanded falls from 120 to 80.
(_______ - ________) /[________ + ________/2]
____________________________________________ = __________ = __________
(_______ - ________) /[________ + ________/2]
a. Inelastic, elastic, unitary elastic __________________________
2. The price rises from $5 to $10 and quantity demanded rises from 10 to 20.
(_______ - ________) /[________ + ________/2]
____________________________________________ = __________ = __________
(_______ - ________) /[________ + ________/2]
a. Inelastic, elastic, unitary elastic __________________________
3. The price falls from $100 to $50 and quantity demanded falls from 60 to 40.
(_______ - ________) /[________ + ________/2]
____________________________________________ = __________ = __________
(_______ - ________) /[________ + ________/2]
a. Inelastic, elastic, unitary elastic __________________________
Application Questions
1. Scenario: Honda Civic’s rise in price from $20,000 to $22,000 and the quantity of Civics sold each week falls from 2
to 1.
(_______ - ________) /[________ + ________/2]
____________________________________________ = __________ = __________
(_______ - ________) /[________ + ________/2]
b. Inelastic, elastic, unitary elastic __________________________
2. Scenario: Marlboro cigarettes raise in price from $3.00 a pack to $6.00 and the quantity of Marlboro packs sold
each week falls from 20000 to 1000.
(_______ - ________) /[________ + ________/2]
____________________________________________ = __________ = __________
(_______ - ________) /[________ + ________/2]
c. Inelastic, elastic, unitary elastic __________________________
18
3. A local pizzeria is trying to determine whether or not to drop the price of their pizza from $3.00 to $2.00. At $3.00
they will sell 100 slices per week and at $2.00 they will sell 200. Determine the price elasticity of demand and then
explain why they should or should not drop the price.
(_______ - ________) /[________ + ________/2]
____________________________________________ = __________ = __________
(_______ - ________) /[________ + ________/2]


-
Did the price change cause an elastic or inelastic response? __________________________
If the firm drops their price by _________%, they will see an increase in sales of __________%
Calculate the total revenue of each price:
Multiply the first price per slice by the first QD – $______ x _______ = ___________________
Multiply the second price per slice by the second QD – $ ______ x _______ = __________________
Which price point generates the most total revenue? ______________________
Indicate for each of the following whether the product will be inelastic or elastic and list the determinant to explain why.
Item
Elastic/Inelastic
Determinant
Insulin for a diabetic
Heinz 57 Tomato Sauce
Food
Polo Brand Clothing
Cigarettes
Total Revenue
- For each of the following, determine the total revenue using the following formula – P x QD = Total Revenue
Price Per Taco
QD
Total Revenue
$2.00
75
1.75
100
1.50
125
1.25
165
1.00
175
0.75
200
a. At what price point does this business bring in the highest total revenue? ___________________
19
Study Guide – Demand (Ch. 4)
Understanding Demand
1. Demand is defined in economics as the ___________________,_________________________, and
_____________________ to purchase a product
2. The study of the behavior individuals and firm in the marketplace is known as _______________________________
3. The Law of Demand says that _____________________________________________________________________
4. Based on the law of demand, we can assert that price controls the quantity ________________________________
5. A change in price is reflected as __________________________ along the demand graph.
6. Give an example of the income effect _______________________________________________________________
7. Give an example of the substitution effect ___________________________________________________________
8. A table that lists the amount a person is willing to purchase at various price points is known as the
________________________ schedule
9. A table that lists all people in the market and their willingness to purchase at various price points is a
________________________ demand schedule.
10. The _______________________ curve is a visual representation of the demand schedule and is plotted on a graph.
11. A shift to the right indicates an ________________________ in demand, whereas a shift to the left indicates a
________________________ in demand.
Shifts of the Demand Curve
12. Briefly describe how the five determinants of demand can shift the curve:
a. Consumer Income________________________________________________________________________
b. Consumer Expectations____________________________________________________________________
c. Population_______________________________________________________________________________
d. Consumer Tastes and Advertising____________________________________________________________
e. Price of Related Products___________________________________________________________________
_______________________________________________________________________________________
Elasticity of Demand
13. Define Elasticity of Demand ______________________________________________________________________
14. What is the difference between an inelastic and elastic product? _________________________________________
______________________________________________________________________________________________
15. __________________________ would be an example of an elastic product, whereas _________________________
would be an example of an inelastic product.
16. List the four determinants of elasticity of demand:
a. ________________________________________________________________________________________
b. _____________________________ __________________________________________________________
c. ________________________________________________________________________________________
d. ________________________________________________________________________________________
17. A product is considered elastic if it has a value greater than ________ and inelastic if it has a value less than ______.
20
Graphing the Demand Curve
Price Per Soda
Market Quantity
Demanded
1.00
250
2.00
200
3.00
150
3
4.00
100
2
5.00
50
1
6.00
25
0
7.00
0
8
7
6
5
4
25 50 100 125 150 175 200 225 250 275
a. As a result of the law of demand, the curve is _______________________ sloping?
b. What might happen to the demand for soda if the population increased? _________________________
Price Per
QD per week
QD after
Pack of Gum
before recession
recession
80
(cents)
70
10
200
180
20
180
160
30
160
140
40
140
110
50
120
90
60
100
60
70
80
40
80
60
20
60
50
40
30
20
10
20
40
60
80 100 120 140 160
180 200
0
a. Which way did the curve shift after the recession? What does this indicate ________________________
b. What was most likely the cause of this shift?_________________________________________________
Price per QD (in thousands
QD
QD after
.70
online
per week)
after first
free P2P
.60
introductory
song
year
sharing
phase
.50
.10
5
10
4
.20
4
6
3
.30
3
4
2
.40
2
3
1
.50
1
2
0
.40
.30
.20
.10
0
1
2
3
4
5
6
7
8
9
10
.60
0
1
0
a. In this example the D2 curve shifted to the _________________________ indicating an _______________ in the
demand for online songs.
b. Which way did the curve shift after free file sharing occurred? ________________________________________
c. What does a shift in that direction show? _________________________________________________________
21
22
23
Daily Tens
1.
Why is the demand curve downward sloping?
a. Because of the positive relationship between p and qd.
b. Because of the inverse relationship between price and qd.
c. Because of the direct relationship between price and qd.
d. Because of negative relationship between supply and demand.
2.
Respectively, what do the above graphs illustrate?
a. A shift in the curve, movement along
b. Movement along the curve/Shift
c. A change in quantity demanded/a change in quantity demanded
d. A change in demand/a change in quantity demanded
3.
Each of the following represents an analysis of the demand for the American automobile
1.
The price of American automobiles rises ________________________
2.
The price of gasoline rises ________________________
3.
The price of Japanese automobiles rises ________________________
4.
Buyers' incomes fall ________________________
5.
Buyers find that American automobiles are of higher quality __________________
6.
Mexican automobile buyers are now able to buy American automobiles _____________________
7.
Buyers expect that the price will drop next year _____________________
8.
The price of American automobiles drop ____________________
24
4.
Event
(Shift or Movement)
Effect (Change in QD
or Change in D)
Determinant
1. The price of designer clothing
increases.
2. The price of designer clothes
decreases.
3. The popularity of designer
clothing increases.
4. The cost of Polo clothing
doubles; what is the effect on
Hilfiger brand clothing?
5. Consumer’s receive a pay raise;
designer clothing is a normal good.
6. Consumer’s expect designer
clothing to fall in price in a week.
7. There is a decrease in
population.
5.
Product
Gasoline (tomorrow’s prices)
Elastic or Inelastic
Heinz baked beans
Infiniti G37
Insulin for a diabetic
6.
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Determinant
Essential Questions
1. How do we determine if a consumer exhibits “demand” in the marketplace?
______________________________________________
2. Why is the demand curve downward sloping?
_______________________________________________________________________
3. What is the difference between movement along the curve and a shift?
a. A change in QD is based on a change in ____________ (Illustrated as ________________ along the
curve)
b. A change in D is based on a change in the _________________________(illustrated as a_________
in the curve)
4. What is the difference between elastic and inelastic demand?
a. Elastic products have a _________________response in sales based on a _______________change
in p (wants).
b. Inelastic products have a ________________response in sales based on a __________________
change in p (needs).
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