Lesson Plan Format

Your Name: Nick Olson Length of lesson: 52 minutes Title of lesson: Law of Demand Guiding Question: How can we analyze current events to predict what will happen in the market?D Overview: The students have a strong understanding of supply, and it is time to learn about demand before we go over equilibrium; therefore we are going to go over how demand is negatively related, and what a demand curve, and demand schedule look like including the importance of a demand market opposed to individual demand schedules Objectives: Students will be able to draw a demand curve, and create a demand schedule; students will be able to create a demand schedule and curve based for a product of their choice.

Anticipated student conceptions or challenges to understanding: The confusion of supply and demand being similar. Since they are taught separately it may difficult for them to distinguish between the two.

Materials/Evidence/Sources: Worksheet, reading, and their notebooks Assessment: Each group will write their demand curve on the board to see if they understand what it is supposed to look like.

Instructional Sequence:

1. Will start off with the journal question of Draw what you think a demand curve will look like? 2. Will walk around and look for a good example in their notes and ask one of them to draw it on the board 3. Then pass out the basics of demand hand out/reading; we will then popcorn read the first page only 4. Then will go over the demand schedule more on a powerpoint and write the one in the reading on the board, and then show how it works with and coincides to the demand curve that will be drawn next to it

5. Then will draw an empty demand schedule and empty graph telling them that they are going to get in groups of 4 and create market demand curves. First the product will be itunes songs and they will create their own demand schedule. Then they will get in a group of 4 and they will create their market demand for the product. Then I will have them write the demand schedules on the board and then I will add them together on the board and we will create a demand schedule for the class market 6. After they write this they will be given a handout/worksheet to finish in class or to do for homework.

Students will start with a journal question of what do you think a demand curve will look like?, then we will assess and one of the students will draw their graph on the board. Then will pass out the reading on demand. Will popcorn read the demand reading. The students will then take notes on what demand is specifically. In groups they will create a market demand curve. I will put them in groups of 4 and ask each of them to create a demand schedule, and curve for a product . Then tell them that they just created their own market demand curve. Then go over how quantity demanded and shift in demand is different. They will then get a handout to do finish and do for homework.

Reading in class

ITS REALLY About DEMAND

What Demand Is:

Economists have a very precise definition of demand. For them demand is the relationship between the quantity of a good or service consumers will purchase and the price charged for that good. More precisely and formally the Economics Glossary defines demand as "the want or desire to possess a good or service with the necessary goods, services, or financial instruments necessary to make a legal transaction for those goods or services."
What Demand Is Not:

Demand is not simply a quantity consumers wish to purchase such as '5 oranges' or '17 shares of Microsoft', because demand represents the entire relationship between quantity desired of a good and all possible prices charged for that good. The specific quantity desired for a good at a given price is known as the quantity demanded. Typically a time period is also given when describing quantity demanded.
Demand - Examples of Quantity Demanded:

When the price of an orange is 65 cents the quantity demanded is 300 oranges a week. If the local Starbucks lowers their price of a tall coffee from $1.75 to $1.65, the quantity demanded will rise from 45 coffees an hour to 48 coffees an hour.

Demand Schedules:
A demand schedule is a table which lists the possible prices for a good and service and the associated quantity demanded. The demand schedule for oranges could look (in part) as follows: $ .75 $ .70 $ .65 $ .60
Demand Curves:

270 oranges/week 300 oranges/week 320 oranges/week 400 oranges/week

A demand curve is simply a demand schedule presented in graphical form. The standard presentation of a demand curve has price given on the Y-axis and quantity demanded on the Xaxis.

The Law of Demand:

The law of demand states that, ceteribus paribus (latin for 'assuming all else is held constant'), the quantity demanded for a good rises as the price falls. In other words, the quantity demanded and price are inversely related. Demand curves are drawn as 'downard sloping' due to this inverse relationship between price and quantity demanded.

P R I C E

$ .75 $ .70 $ .65 $ .60

200 300 400 500

Demand for Oranges/Week

How do consumers use the law of demand to respond to changes in market conditions? The law of demand states that consumers will buy more goods and services at lower prices than at higher prices. Changes in demand mean that an increase in the price of a substitute good or service will increase the demand; and a decrease in price will decrease the demand an increase in the price of a complementary good or service will lead to a decrease in the demand for the good; and decrease in prices will lead to an increase in demand an increase in the number of consumers in the market will increase the demand for a good or service a change in taste or preference will change the demand for a good or service an increase in income will generally increase the demand for goods and services Buyers will use this information to make decisions about purchases. Higher gasoline prices have changed consumers demand for larger vehicles complementary goods. Higher gasoline prices have encouraged consumers to use car pools, buses, bicycles, and motorcycles more substitute goods.

The worksheet:

Name ________________________________ Hour _____ ECON-4/1

Demand, Supply & Prices

1. The Law of Demand states that as price goes

Price
________________ ________________

Demand
________________ ________________

2. Give a personal example of the law of demand when prices go down (In other words what good or service that you normally buy, would you buy more of, if the price decreased?) ____________________________________________________________________________ ____________________________________________________________________________ ________________ 3. The Law of Demand further states that as price goes(2)

Price
________________ ________________

Demand
_________________ _________________

4. Give a personal example of the law of demand when prices go up (What good or service that you normally buy, would you buy less of, if the price increased?) ____________________________________________________________________________ ____________________________________________________________ 1. What is Elasticity of Demand? ____________________________________________________________________________ _____________________________________________________________ 2. What is meant when demand for a good is Inelastic? ____________________________________________________________________________ _____________________________________________ 3. List a good for which demand is inelastic (If the price went up, youd still buy it) _________________ 4. What is meant when demand for a good is Elastic? ____________________________________________________________________________ ______________________________________________ 5. List a good for which demand is elastic (If the price went up, you wouldnt buy it)

In the space below draw an elastic demand curve(Dont forget ALL labels)

In the space below draw an inelastic demand curve(Dont forget ALL labels)