1. Bellringer
Think back to your business idea from entrepreneurship week.
1. What was your entrepreneurial idea?
2. Who are your customers? (income?, age?, gender? Culture? Lifestyle?)
3. How often do they buy your goods/services in
a day, month, year etc?
4. Are there any other products that people
would buy along with your products?

2. Changes to demand
Does Demand
change when the
price of a good
changes?
Only the Quantity
demanded
changes with price
Review:
What is the Q*D at
Price = $1.50?
When Q*D is at
50, what is the
price?

3. #5
O
P
T
I
C

4. Demand Vocab
 “complements” – a good that is purchased with
another
 “substitutes” – a good which can be substituted for
another
 Substitution effect - Changes to prices of similar
goods changes people’s demand
 Normal goods – goods you buy more of when your
income increases
 Inferior goods – goods you buy less of when your
income increases
 Income Effect – changes to a person’s income
changes their demand

5. Why is this important for firms?

6. What sorts of goods are these?
Others?
Compliments?
Normal/Inferior?

11. Cultural?
 Preferences change
 South Korea >>>>>

18. At your tables
6. When would be a good time to sell normal
goods? (when the economy is….?)
7. When would be a good time to sell inferior
goods? (when the economy is…..?)
8. List two complements for ground beef
9. List two substitutes for ground beef

19. Determinants of Demand
 Causes that
will change
Demand

20. Determinants of Demand
 Changes to tastes and preferences

21. Determinants of Demand
 Availability and price of substitute goods

22. Determinants of Demand
 Availability and price of complements

23. Determinants of Demand
 Changes to income

24. Determinants of Demand
 Changes to population

25. Determinants of Demand
 Expectations of future price

26. A trick to remember
determinants of demand
T R I B E
T = tastes of consumers
R = Related goods (P$ change)
I = Income of buyers
B = # of buyers
E = expectations of future price
http://quizlet.com/2043838/individual-markets-flash-cards/

27. Demand Curve
Experiment
1. Conduct a demand curve experiment
2. Choose 1 good (snickers bars, monster drinks,
movie tickets, takis bags, AZ ice tea, “5” packs of
gum or Hershey bars)
3. Make up 5 price points and a time period
4. Survey 5 people and find out their demand per
week (write their names)
5. Graph the total demand on a correctly labeled graph
6. Write an explanation of how the experiment shows
the law of demand in action AND how a company
might use this information

28. BR
Which part of TRIBE will
change in the following
scenarios to the Tucson
movie theater market?
1. Average wage in Tucson increases
2. Price of DVDs & flat screen TVs decrease
3. Population of Tucson doubles
4. New Brad Pitt & J-Lo movie comes out
5. KOLD reports movie tickets will increase 15%
in 2014
6. Xbox1 & PS4 hit the stores

29. Quantity
$
Graphically speaking… Demand of movie tickets
D*
A RAISE!!!!
A Child!!!!
D after raise

30. On a separate sheet of paper
 Graphically sketch the changes to the demand curve
Identify the part of TRIBE Label your graphs
1. New residents move to Arizona (houses)
2. Unemployment rises (steak)
3. The price of buns increases (hot dogs)
4. The internet gets more expensive (itunes mp3’s)
5. Unemployment rises (studio apartments)
6. You go to college (text books)
7. Average income rises (Hawaiian vacations)
8. Average income rises (used clothing)
9. The price of meat increases (A1 steak sauce)
10. Eegees releases a brand new flavor (slushies)
11. Gas prices increase to $6.50/gallon (bicycles)
12. Dept of Labor reports college grads earn more $$ (college degrees)
13. You read an article that gas prices will triple in October (gas)
14. Make up your own example and show demand shift
$
Q

31. On a separate sheet of paper
 Graphically sketch the changes to the demand curve
Identify the part of TRIBE Label your graphs
1. New residents move to Arizona (houses)
2. Unemployment rises (steak)
3. The price of buns increases (hot dogs)
4. The internet gets more expensive (itunes mp3’s)
5. Unemployment rises (studio apartments)
6. You go to college (text books)
7. Average income rises (Hawaiian vacations)
8. Average income rises (used clothing)
9. The price of meat increases (A1 steak sauce)
10. Eegees releases a brand new flavor (slushies)
11. Gas prices increase to $6.50/gallon (bicycles)
12. Dept of Labor reports college grads earn more $$ (college degrees)
13. You read an article that gas prices will triple in October (gas)
14. Make up your own example and show demand shift
$
Q

32. On a separate sheet of paper
 Graphically sketch the changes to the demand curve
Identify the part of TRIBE Label your graphs
1. New residents move to Arizona (houses)
2. Unemployment rises (steak)
3. The price of buns increases (hot dogs)
4. The internet gets more expensive (itunes mp3’s)
5. Unemployment rises (studio apartments)
6. You go to college (text books)
7. Average income rises (Hawaiian vacations)
8. Average income rises (used clothing)
9. The price of meat increases (A1 steak sauce)
10. Eegees releases a brand new flavor (slushies)
11. Gas prices increase to $6.50/gallon (bicycles)
12. Dept of Labor reports college grads earn more $$ (college degrees)
13. You read an article that gas prices will triple in October (gas)
14. Make up your own example and show demand shift
$
Q

33. On a separate sheet of paper
 Graphically sketch the changes to the demand curve
Identify the part of TRIBE Label your graphs
1. New residents move to Arizona (houses)
2. Unemployment rises (steak)
3. The price of buns increases (hot dogs)
4. The internet gets more expensive (itunes mp3’s)
5. Unemployment rises (studio apartments)
6. You go to college (text books)
7. Average income rises (Hawaiian vacations)
8. Average income rises (used clothing)
9. The price of meat increases (A1 steak sauce)
10. Eegees releases a brand new flavor (slushies)
11. Gas prices increase to $6.50/gallon (bicycles)
12. Dept of Labor reports college grads earn more $$ (college degrees)
13. You read an article that gas prices will triple in October (gas)
14. Make up your own example and show demand shift
$
Q

34. On a separate sheet of paper
 Graphically sketch the changes to the demand curve
Identify the part of TRIBE Label your graphs
1. New residents move to Arizona (houses)
2. Unemployment rises (steak)
3. The price of buns increases (hot dogs)
4. The internet gets more expensive (itunes mp3’s)
5. Unemployment rises (studio apartments)
6. You go to college (text books)
7. Average income rises (Hawaiian vacations)
8. Average income rises (used clothing)
9. The price of meat increases (A1 steak sauce)
10. Eegees releases a brand new flavor (slushies)
11. Gas prices increase to $6.50/gallon (bicycles)
12. Dept of Labor reports college grads earn more $$ (college degrees)
13. You read an article that gas prices will triple in October (gas)
14. Make up your own example and show demand shift
$
Q

35. On a separate sheet of paper
 Graphically sketch the changes to the demand curve
Identify the part of TRIBE Label your graphs
1. New residents move to Arizona (houses)
2. Unemployment rises (steak)
3. The price of buns increases (hot dogs)
4. The internet gets more expensive (itunes mp3’s)
5. Unemployment rises (studio apartments)
6. You go to college (text books)
7. Average income rises (Hawaiian vacations)
8. Average income rises (used clothing)
9. The price of meat increases (A1 steak sauce)
10. Eegees releases a brand new flavor (slushies)
11. Gas prices increase to $6.50/gallon (bicycles)
12. Dept of Labor reports college grads earn more $$ (college degrees)
13. You read an article that gas prices will triple in October (gas)
14. Make up your own example and show demand shift
$
Q