by Ashton Ramos

1. What products, or services will be in high demand this month and next month? (Warm-Up)

ashton_ramos1999 — 2015-11-03 15:48:55 UTC

A bunch of product that will be in high demand this month and next month is going to electronics because that's what our generation is focusing on. Having up to date phones, TV's, laptops, and etc.

Law of Demand

ashton_ramos1999 — 2015-11-03 15:52:46 UTC

There is always an inverse relationship between the price of a good and the quantity demanded. Which means if the price of that quantity is high, then that's the lower the demand of the quantity is going to be.

With the price of ice cream at $8, why is demand low?

ashton_ramos1999 — 2015-11-03 15:53:27 UTC

Demand is low because less people are willing to buy ice cream at $8 and aren't able to buy a scoop of ice cream for $8. So the demand of the quantity will be low.

With the price of ice cream at $3, predict the quantity of demand

ashton_ramos1999 — 2015-11-03 15:54:06 UTC

The quantity of ice cream at the price of $3 could be between 600 and 700 based of the chart of the video I just watched.

Demand

ashton_ramos1999 — 2015-11-03 16:02:56 UTC

willingness and ability to buy a good at a range of prices; resources and/or services

Marginal Utility

ashton_ramos1999 — 2015-11-03 16:10:51 UTC

pleasure, usefulness, or satisfaction customers receive from a product/service ; varies customer to customer

Diminishing Marginal Utilities

ashton_ramos1999 — 2015-11-03 16:14:14 UTC

Additional marginal utility decreases as more units are consumed. Diminishing marginal utility indicates a willingness not to purchase or consume more of a good/service.

Factors that Affect Demand

ashton_ramos1999 — 2015-11-03 16:16:28 UTC

1. Number of consumers in the market - population.

2. Change in incomes - bad economy or reduction in pay or lay offs.

3. Changes in taste and popularity - seasonal or holiday.

4. Changes in expectations - thinking about the future.

5. Change in the prices of related goods or services - changes in substitutes or complements.

Elasticity of Demand

ashton_ramos1999 — 2015-11-03 16:24:53 UTC

"Extent to which a change in prices causes a change in the quantity demanded."

When demand id elastic, a change in price causes a larger percentage of change in quantity demanded.

Substitutes keep demand elastic - consumers can buy the substitute over the name brand.
Postponing purchases keep elastic demand - consumers can wait for sales to purchase items that are expensive.

Inelastic Demand

ashton_ramos1999 — 2015-11-03 16:28:56 UTC

"Price changes have little effect on the quantity demanded."

Examples: Turkey at Thanksgiving time
Example 2: Gas prices