Period 5Daily Writing Prompt

What is a demand schedule?

Demand Curves

• Ceteris paribus – “all other things held constant”

• Price is the only factor that affects demand

Change in Demand

• Price stays the same, but the entire demand curve shifts

• Lemonade Stand• What happens when there’s a heat

wave?• What about when it’s cold out?

Normal Goods

• Goods that consumers demand more of when incomes increase

• Food, clothes, CDs, movies…other examples?

Inferior Goods

• Increase in income causes demand to fall

• Mac n’ Cheese, used cars…other examples?

Other Factors:

• Population: growing population demands more goods

• Consumer Tastes – trends & fads

• Advertising

Price of Related Goods• Complements: two goods that are

bought and used together.–Peanut butter & Jelly–Ski boots & skis

• Substitutes: Goods used in place of one another–Snowboards vs. skis–Lemonade vs. Iced tea