Week 10, teaching practice

ibrahim khojah

REVIEW

Three basic problems in every economy must face :

1-What shall be produced ?

2-How to produce ?

3-For whom ?

Productive factors :

LAND , Labor , Capital , Entrepreneurship

Quantity demanded :

The amount of a good that buyers are willing and able to purchase .

Demand carve :

A graph of the relationship between the price of a good and the quantity demanded.

Law of demand:

When the price of a good raises ,the quantity demanded falls.( all other things are constant)

Therefore the demand curve slopes downward .

An increase in demand :

Any change that increases the quantity demanded at every price

, shift the demand curve to the right.

7.5 The Demand Determinants

Objectives :

The purpose of this lesson is''after the students can draw the demand curve''

*the students can confirm the understanding of demand concept.

*the students can examine what determines demand .

In addition to price , there are many variables that shift the demand curve :

Number of buyers:

market demand is derived from individual demand. If Irmeli, another consumer of ice-cream ,were to join Katri and Merja , the quantity demanded in the market would be higher at every price and the demand curve shifts to right.

Income :

Normal good : an increase in income leads to an increase in demand .

Inferior good : an increase in income leads to a decrease in demand .(bus ride)

Testes :

It based on historical and psychological forces that are beyond the realm of economics.

Expectations :

Your expectations about the future may affect your demand for goods and services today.

Substitutes goods ;

Two goods for which an increase in the price of one leads to an increase in the demand for the other .

Complements goods :

Two goods for which an increase in the price of one leads to a decrease in the demand for the other .

7.5

Team work

Group A

During the 1990s, technological advances reduced the cost of computer chips. How do you think this affected the market for computers?

For computer software ?

For typewriters ?

Group B

Suppose that in the year 2005 the number of births is temporarily high. How does this baby boom affect the price of baby-sitting services in 2010 and 2020? 5-year-olds need baby-sitters, whereas 15-year-olds can be baby-sitters

.

Group C

Case Study

Public policymakers often wants to reduce the amount that people smoke.what are the ways?

Prohibition of cigarette advertising

Raise the price, taxes the manufactures,

Teenagers and the price.

Other tobacco , cigar, chewing tobacco, marijuana.

7.5

Next Lesson

SUPPLY

Each member of the class bring with him an advertisement,

From stores, newspapers, companies, net,…ect