$8 $6 $4 $2 Page 2 Create a demand curve for the product based on the demand schedule: Put price on the Y axis and quantity on the X axis Label both Label
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$8 $6 $4 $2 Page 2 Create a demand curve for the product based on the demand schedule: Put price on the Y axis and quantity on the X axis Label both Label
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Handout #
Name _________________________________________ Hour _______SUPPLY AND DEMAND WORKSHEET
DEMAND
Part I: Use the space below to take notes on the basic principles of demand.Demand:
Law of Demand:
Demand Schedule:
Demand Curve:
Part II:
Use the chart below to replicate the demand schedule we create in class. Demand Schedule for Product: _________________________Price Per Item Quantity Demanded
$10 $8 $6 $4 $2 Create a demand curve for the product based on the demand schedule: Put price on the Y axis and quantity on the X axis. Label both. Label the demand curve.Part III: Read Chapter 4, Section 2
Why does a demand curve slope downward?
Define:
Income Effect:
Substitution Effect:
Describe a substitution effect scenario based on the demand curve above.Define Change in Quantity Demanded:
Give an example from the demand curve above to illustrate thisDefine Change in Demand:
Explain the 6 factors that can cause a change in demand 1. 2. 3. 4. 5. 6. You just won the lottery. Draw a new demand curve (on your original curve) to show where demand will shift. Label it ͞More Income" You were just told that your product was made with toxic materials. Draw a new demand curve (on your original curve) to show where demand will shift. Label it ͞Product Rejection"Define Normal Goods:
Give an example (other than what is in the book) of a normal goodDefine Inferior Goods:
Give an example (other than what is in the book) of an inferior goodSUPPLY
Part IV: Read Chapter 5 Section 1
Define the terms below and follow the instructions listed after the vocabulary.1. Supply:
2. Law of Supply:
3. Supply Schedule:
4. Supply Curve:
Using the product from your demand worksheet, we will create a supply schedule using the chart below.
Price Quantity
0Plot your supply curve using the information above on the same chart as you plotted your demand curve.