THE LAWS OF DEMAND AND SUPPLY ARE ALL ABOUT PRICE:
It's about understanding how price affects the quantity demanded by consumers - and the quantity supplied by businesses - for a product in a market
In order to understand this, we need to understand a couple "laws" of Economics: The Law of Demand and the Law of Supply. These aren't universally applicable laws like those in Physics, but are used in the sense that they apply most of the time to most products in most markets. For now, let's focus on the simple model of markets that is used in introductory Economics, and let's start with Demand.
HOW TO COMPLETE THIS ASSIGNMENT:
Get out a piece of paper and a pen to be able to write your two responses to questions and to make two graphs (one will be a demand curve and one will be a supply curve). You will upload a photo of your work to the Canvas assignment titled "Supply and Demand." Be sure to write large enough and legibly enough for us to read it clearly, and when you complete your graph, label your axes and units, as well as each point on the demand or supply curve.
The steps for this assignment are numbered in order, below. Steps that direct you to "Read" or "Review" work exactly like they sound; you do not need to provide any answers to these, but you are welcome to make any notes, if you like. Steps 3 and 8 will direct you to "Answer this": Write your answer on your paper (you can label them #3 and #8). Steps 5 and 10 will direct you to "Graph this." Take the data in the demand or supply schedule (table of data) and graph it. The Khan Academy videos are very helpful in demonstrating how to do this (with different data, of course). Good luck and let us know if you have any questions.
The steps for this assignment are numbered in order, below. Steps that direct you to "Read" or "Review" work exactly like they sound; you do not need to provide any answers to these, but you are welcome to make any notes, if you like. Steps 3 and 8 will direct you to "Answer this": Write your answer on your paper (you can label them #3 and #8). Steps 5 and 10 will direct you to "Graph this." Take the data in the demand or supply schedule (table of data) and graph it. The Khan Academy videos are very helpful in demonstrating how to do this (with different data, of course). Good luck and let us know if you have any questions.
LAW OF DEMAND
(using tables and graphs to demonstrate it)
1. READ THIS:
2. WATCH THIS:LEARN TO READ A DEMAND CURVE:
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4. WATCH THIS:LEARN HOW TO CREATE DEMAND SCHEDULES AND CURVES:
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3. ANSWER THIS:Use complete sentences for your answer.
According to the Law of Demand, in which price situation (high or low) will people search harder for substitutes for oil? Explain why.
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5. GRAPH THIS: |
LAW OF SUPPLY
(using tables and graphs to demonstrate it)
6. READ THIS:
7. WATCH THIS:LEARN TO READ A SUPPLY CURVE:
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9. WATCH THIS:LEARN HOW TO CREATE SUPPLY SCHEDULES AND CURVES:
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8. ANSWER THIS:Use complete sentences for your answer.
According to the Law of Supply, if the price of cars falls across the board, how are carmakers likely to respond (will they make more or fewer cars)? Explain why.
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10. GRAPH THIS: |
DISTINGUISHING DEMAND AND SUPPLY
(recognizing and remembering)
11. READ THIS:
12. REVIEW THIS: QUIZLET STUDY SET FOR SUPPLY AND DEMAND TERMS & CONCEPTSClick on the image to the right ("Supply and Demand Study Set") to access the Quizlet set.
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