Ch. 4.1 Notes: Demand

Ch. 4.1 Notes: Demand

Why do you buy what you buy?

I. Demand = the desire, ability, and willingness to buy a product at certain prices

$230.00 $24 @ JC Penney

A. 2 Reasons explaining purchase decisions….. 1. Law of Demand = we buy more of a product when they lower the price over time

Walmart to sell iPhone 5C for $79, iPhone 5S for $189 (9/12/13)

2. Personal preferences developed through

3 types of advertising…..

a. Print Ads

b. Product Placement

http://www.youtube.com/watch?v=wACBAu9coUU

c. Commercials

2014 Super Bowl

4 million per 30 second commercial paid by

advertisers

B. Demand Graphs 1. Demand Schedule > a listing that shows the amount people will buy of a product at different prices (Price Down = Quantity Up) 2. Demand Curve > graphing the demand schedule.

1. see site http://images.google.com/imgres?imgurl=http://www.econweb.com/MacroWelcome/sandd/Equilibrium.gif&imgrefurl=http://www.econweb.com/MacroWelcome/sandd/notes.html&h=211&w=255&sz=15&hl=en&start=2&tbnid=Y3tPXR9k3kHuAM:&tbnh=92&tbnw=111&prev=/images%3Fq%3Dequilibrium%2Bprice%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DG

II. Diminishing Marginal Utility >

consumers have less satisfaction of

products as they purchase more.

1. Explains why sellers must lower

price eventually to attract more

demand

Advertisement Activity……. 1. Create a print ad for a product (magazine, newspaper, billboard) 2. Group of 2 to 3 3. Brainstorm and start. Follow instructions 4. Bring printed materials on Thurs. 5. Due Tues. Vote Wed. 6. We will vote for top 3 best and worst Ad Top 3 full credit and extra credit Last place gets possible F Bacay grades the rest for regular credit 7. 3 factors…Is your product clear? Who is your target consumer? Will it appeal to them?

Demand Cure and Schedule> http://www.netmba.com/econ/micro/demand/curve/Photo Examples of Econ Concepts >http://images.google.com/imgres?imgurl=http://

www.econoclass.com/images/eggslarge.jpg&imgrefurl=http://www.econoclass.com/whatswrongwithpicture.html&h=827&w=1315&sz=142&hl=en&start=4&tbnid=gsddPZybB-FHgM:&tbnh=94&tbnw=150&prev=/images%3Fq%3Ddiminishing%2Bmarginal%2Butility%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DN

GOOD GRAPHS = http://www.harpercollege.edu/mhealy/eco212i/lectures/s&d/s&d.htm

http://www.superbowl-commercials.org/14261.html ….. 2012

http://www.youtube.com/watch?v=3HpIZrOH4zc = product placement