Demand equation and demand curve

Demand
Demand curve
Demand equation
Change in demand
Shift of the demand curve
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Slide 1: Tekstslide
EconomieMiddelbare schoolvwoLeerjaar 3

In deze les zitten 21 slides, met interactieve quizzen, tekstslides en 1 video.

time-iconLesduur is: 50 min

Onderdelen in deze les

Demand
Demand curve
Demand equation
Change in demand
Shift of the demand curve

Slide 1 - Tekstslide

0

Slide 2 - Video

What is a substitute product?

Slide 3 - Open vraag

Substitute product
A product that fulfills the same need
Need for a beverage:
Milk/Juice/ Tea

Whatch a movie:
Theatre/Netflix

Slide 4 - Tekstslide

Inverse relationship 
When the price of milk decreases, the quantity of milk demanded increases

Slide 5 - Tekstslide

Substitute effect
When the price of milk increases, consumers will replace milk with a substitute product like juice

Juice becomes relatively cheap

Slide 6 - Tekstslide

Think of an example of two substitute products

Slide 7 - Open vraag

Exercise: Go to page 40
Read the theory 'The demand for goods'
Write down the demand-equation for tickets for the 
One Direction concert
Qd = ..............................
What does Qd stand for?................
What does P stand for?...............
Do exercise 1 and 2
timer
8:00

Slide 8 - Tekstslide

Answers to exercise 1 A,B and C
A. P = 20 --> Q d = -100 X 20 + 24,000 = 22,000 tickets
B. P = 80 --> Qd = -100 X 80 + 24,000 = 16,000 tickets
C. The Ziggo Dome has 17,000 seats. So: Q d = 17,000
-100 P + 24,000 = 17,000
              -24,000         - 24,000
            -100 P = - 7,000 
                    P = -7,000/ -100 = 70


Slide 9 - Tekstslide

Answer to exercise 1 D
The concert was sold out in ten minutes. Apparently demand was much larger than supply.
So probably the price was a lot lower than € 70 

Slide 10 - Tekstslide

Drawing the curve
The price is on the vertical axis
The quantity is on the horizontal axis
!!!!!

And now: exercise 2

Slide 11 - Tekstslide

Slide 12 - Tekstslide

Slide 13 - Tekstslide

Exercise
exercise
Source
Answers
3
2
Answersheet
4
3 and 4
Answersheet
5
5
Answersheet
timer
8:00

Slide 14 - Tekstslide

Exercise 3
A  P = 20 --> Q d = -0.25 X 20 + 275 = 270 correct 
P = 50 --> Q d = -0.25 X 50 + 275 = 262.5  Not the right formula
B    P = 20 --> Q d = -0.25 X 20 + 162.5 = 157,5 Not ...
C    P = 20 --> -4 X 20 + 275 = 195 Not ...
D    P = 20 --> - 4 X 20 + 350=  270 Correct
P = 50 --> - 4 X 50 + 350  = 150 Correct
D      Q d = - 4 P + 350 is the correct formula

Slide 15 - Tekstslide

Change in demand
As the price increases from € 25 to € 26.50 demand decreases from 400,000 till 340,000

Slide 16 - Tekstslide

Shift of the demand curve
Shift to the right: there is more demand at every price

Causes:
  • Increase in income
  • Number of consumers increase
  • Price increase substitute product (Zoo is more expensive
  • Price decrease of complementary product (price decrease parking lot/ meal prices at restaurant)

Slide 17 - Tekstslide

Complementary product
A product that is closely related to another product. You use them together
Playstation 5 + games
Printer + ink cartridges

Slide 18 - Tekstslide

Which product is NOT a free good
A
Wind
B
Sunlight
C
Street lighting
D
The air we breathe

Slide 19 - Quizvraag

Choose the best description of the word self-sufficiency
A
Buying products with your own money
B
producing product and sell them
C
Producing products for your own use
D
Taking care of your own business

Slide 20 - Quizvraag

study
Study the words of section 2,3 and 4 on page 37
Learn them by heart
Close the book
Person A is going to describe the words. 
Person B has to answer by using the right word

Slide 21 - Tekstslide