Absolute final Demanding session

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Absolute final Demand-ing session!
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FOUNDATION THEORY

• .i.e. you MUST know this!
• A change in PRICE ?
• A movement along the demand curve
• A change in all other factors ?
• A SHIFT of the curve!

So get your whiteboards ready. Write on one
side MOVEMENT ALONG On the other SHIFT
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Cont with worksheet from last lesson.
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More demanding Activities1

• Using demand diagrams show the effect of a rise
  in the price of potatoes on the demand for
• Crisps
• Pasta
• Smash

Need to draw 2 diagrams one for rise in price of
potatoes and one for each of these
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More demanding Activities2

• Using demand diagrams show the effect of a rise
  in the price of crude oil on the demand for
• Oil tankers
• Rail travel
• An economical Smart car!
• A gas guzzling dodge viper!!

Need to draw 2 diagrams one for rise in price of
potatoes and one for each of these
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More demanding Activities3

• Using demand diagrams show the effect of a fall
  in the price of DVD players and the effect it has
  on the demand for pre-recorded DVDs

Need to draw 2 diagrams one for fall in price of
DVD players and one for pre-recorded DVDs
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Changes in the Price of Substitutes
Price of Texaco petrol
Price of Shell petrol
P2
P1
P1
D2
Demand
D1
Q1
Q2
Q1
Q2
Output (Q)
Output (Q)
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Changes in the Price of Complements
Price of DVD Players
Price of Pre-recorded DVDs
P1
P2
P1
D2
Demand
D1
Q1
Q1
Q1
Output (Q)
Output (Q)
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Factors affecting demandturkey task

• Worksheet
• Decide which factor is affecting demand in each
  case
• Draw a graph to show the effect on demand
• Remember that
• price causes a movement along the demand curve
• all other factors cause a shift in the demand
  curve

Image by D'Arcy Norman. Used with permission

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Factors affecting demand - turkey task

• Demand for turkey after a 10 price cut
• Demand for turkey after bird flu is found on a
  farm in Suffolk (February 2007)
• Demand for beef after bird flu was found
• Demand for turkey at Christmas
• Demand for Tescos Finest turkey after a rise in
  income tax
• Demand for turkey after a fall in beef prices

Image by Roland Tanglao. Used with permission

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Factors affecting demandturkey task graphs

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Factors affecting demandturkey task answer
graphs

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• And then open up the next slideshow
• 1.4 Determinants of Supply.ppt