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## Transcript

Unit 2 Day 2

Start

Shifts In Demand

3. TRIBE

2. Law of Demand Review

1. Review Demand

index

P and QD Baby!

Reviewing Demand

Quick Reminders

1. Are demandward curves upward or downward sloping?-Why?2. When we talk about QD are we talking about a movement along the line or a movement of the line?3. What is the only thing that effects demand according to the Law of Demand?

The Law of Demand

What goes in the first circle?What goes in the second circle?

vs

We are looking at changes in points on the line. We move along the line.

Quantity Demanded (QD)

We are looking at the line, or a change in the POSITION of the Line. The line moves either right or left.

Demand (D or △D)

Demand vs Quantity Demanded

Graphically Speaking

Rightward shift = Increase-Increase of D-Increase in P

Graphically Speaking

Leftward shift = Decrease-Decreases D-Decrease P

Use this to remember what triggers Demand shifts.

TRIBE

The Wu-Tang Clan

"Cash Rules Everything Around Me, C.R.E.A.M get the money, Dolla Dolla Bills Ya'll"

Not the Wu-Tang Clan

TasteRelated goodsIncomeBuyers (# of)Expectations= Demand Shift

T-Shift 1--Taste

This is a shift in the overall preference of consumer behavior. This will △D positively or negatively.Ex 1: High wasted pants for girls (aka Mom Jeans) come back into style, so the demand ?Ex 2: The amount of Axe Body Spray used from middle school to high school changes so demand ?

R-Shift 2--Related goods

Complementary Goods: Used in ConjunctionEX: You just read about a bacterial outbreak from individuals who ate NATHANS Hot Dogs. Demand for Hot Dog Buns (?)EX: Demand for Coffee increases so demand for flavored creamers also (?)

R-Shift 2--Related goods

Complementary Goods: these go together and tend to have a positive relationship.EX 1: You just learned that everyone who's eaten a hot dog in the last 5 days in Topeka has gotten really bad poopies...so hot dog bun demand (?)Ex 2: Demand for coffee increases in the fall so the demand for Pumpkin Spice Creamer will (?)

R-Shift 2--Related goods

Substitute Goods: Two very similar goods which may be interchangeable in taste or function, there is normally an inverse relationship.EX: The Playstation 6 finally comes out. Demand for the X-box will (?)Ex: Samsung Galaxy Phones start catching on fire...so iPhone demand will (?)

I-Shift 3--income

Income changes will affect demand:EX: The state of Kansas increases its minimum wage to \$20 per hour. Demand for Taco Bell will (?)EX: Per capita income declines during a pandemic, so overall demand for goods will (?)

Total number of consumers inmarket affects demand positivelyor negatively. EX1: More Buyers ______ EX2: Fewer Buyers ______

E-shift 5-expectations

Consumers perception of productinfluences demand.EX 1: Satellite TV subscriptions in an era of streaming services means demand will ________EX 2: Ozempic antidiabetic drug causes weight loss demand will ________

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