Chapter 5 Supply and Demand
Outline Notes
I. Intro: Supply and demand
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Perhaps $5 if a friend had given her show a rave review.
●
2008, tickets to Carrie Underwood concerts cost around $45 and up.
●
2006, she performed in more than 150 shows, including holiday shows for U.S. troops in
Kuwait and Iraq.
●
It started out at number 2 on
Billboard
's chart of the top-selling 200 albums.
II. How do Demand and Price Interact
-
Most people's understanding of demand comes from their own experience as
consumers.
-
You see
Some Hearts
for sale for $15.
-
This is a key idea in understanding the relationship between demand and price.
●
Demand: What are we willing and able to buy
-
quantity demanded:
the amount of a good or service that consumers are
willing and able to buy at a specific price
-
demand:
the quantity of a good or service that consumers are both willing and
able to buy at various prices
- Quantity demanded is the amount of a good or service that consumers are
willing and able to buy at a specific price.
- Demand is the amount of a good or service that consumers are willing and able
to buy at all prices in a given period.
●
Using a demand Schedule to determine one consumer’s willingness and ability
to buy
-
demand schedule:
a list of the quantities of a good that one person will buy at
various prices
-
demand curve:
a graph of the relationship between the price of a good or
service and the quantity buyers are willing and able to buy
- demand schedule. An individual demand schedule lists the quantities of a good
that one person will buy at various prices
- A demand curve shows the relationship between price and the quantity that
buyers are willing and able to buy.
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- Fall '16
- Craig Zupi
- Supply And Demand, producer
