Monday, November 29, 2010

Unit 2 Prices and Markets Chapter 4 Demand

Ch. 4 Sec. 1 Reading Strategy Characteristics Of Demand

Ch. 4 Sec. 1 Section Review Determining Cause And Effect

Ch. 4 Sec. 2 Reading Strategy Determinants Of Demand

Ch. 4 Sec. 2 Section Review Determinants Of Market Demand

Ch. 4 Sec. 3 Reading Strategy Change In Price

Ch. 4 Sec. 3 Section Review Organizing



Unit 2
Prices and Markets
Chapter 4: Demand

Chapter Overviews

Section 1: What Is Demand?

Demand is easy to understand because it involves only two variables—the price and quantity of a specific product at a given point in time. Demand does not always stay the same and can be determined by a demand schedule, which shows the various quantities demanded of a particular product at all prices that might prevail in the market at a given time. The Law of Demand states that when the price of something goes up, the quantity demanded goes down, and vice versa.

Section 2: Factors Affecting Demand

Only a change in price can cause a change in quantity demanded. When the price goes up, less is demanded; when the price goes down, more is demanded. The following factors affect demand: the income effect and the substitution effect. Furthermore, demand can change because of changes in the determinants of demand: consumer income, consumer tastes, the price of related goods, expectations, and the number of consumers.

Section 3: Elasticity of Demand

Elasticity is a general measure of responsiveness— an important cause-and-effect relationship in economics. There are three different forms of elasticity: elastic demand, inelastic demand, and unit elastic demand. To estimate elasticity, it is useful to look at the impact of a price change on total expenditures, or the amount that consumers spend on a product at a particular price. This is sometimes called the total expenditures test. The answers to three questions help determine a product's demand elasticity. Can the purchase be delayed? Are adequate substitutes available? Does the purchase use a large portion of income?

Student Web Activity

Cf. http://glencoe.mcgraw-hill.com/sites/007879997x/student_view0/unit2/chapter4/student_web_activities.html

Self-Check Quizzes

Cf. http://glencoe.mcgraw-hill.com/sites/007879997x/student_view0/unit2/chapter4/self-check_quizzes.html

Crossword Game

Cf. http://www.glencoe.com/olc_games/game_engine/content/gln_ss/epp_12/ch04/index.html

Vocabulary eFlashcards

Cf. http://www.glencoe.com/qe/efcsec.php?qi=21822

In-Motion Animations

Individual and Market Demand Curves

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p94.swf

Change in Demand

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p99.swf
Figure 4.2 Individual and Market Demand Curves

Figure 4.4 Change In Demand

(Supply and) Demand, 4:52





Supply and Demand Screen shot 1


Supply and Demand Screen shot 2, Equilibrium

Supply and Demand Screen shot 3, Consumer Surplus

Supply and Demand Screen shot 4, Producer Surplus



Why It Matters

The Big Idea

Section 1 What is Demand?

The demand for a good or service is defined to be the relationship that exists between the price of the good and the quantity demanded in a given time period, ceteris paribus (other things being equal).

Guide to Reading

Section Preview

Content Vocabulary

demand

microeconomics

market economy

demand schedule

demand curve

Deriving the Demand Curve, 2:09



Law of Demand

Introduction to the law of demand, and what it means, 4:44



market demand curve

marginal utility

diminishing marginal utility

Diminishing Marginal Utility, 4:15



Academic Vocabulary

prevail

inversely

Reading Strategy

Products in the News

Wrist Watch

An Introduction to Demand

Main Idea

Economics and You

Demand Illustrated

The Individual Demand Schedule

The Individual Demand Curve

Reading Check

Interpreting

How do you react to a change in the price of an item? How does this illustrate the concept of demand?

The Law of Demand

Main Idea

Economics and You

Why We Call It a "Law"

The Market Demand Curve

Reading Check

Explaining

How does the market demand curve reflect the Law of Demand?

Demand and Marginal Utility

Main Idea

Economics and You

Reading Check

Describing

How does the principle of diminishing marginal utility explain the price we pay for another unit of a good or service?

Review