FACTORS AFFECTING DEMAND.pptx

This is intended for ABM strand

1. FACTORS AFFECTING DEMAND Teaching Demonstration SHS Category Allan Dave Castro Applied Economics In-Service Training 2023 ABULUG DISTRICT

2. LEARNING OBJECTIVES:

3. INITIAL ACTIVITY Question 1:  What are the possible things to consider when we/you buy or avail goods and services? Question 2: When do you plan to buy things you want or need it?

4. Factors Affecting Demand

5. Change in Quantity Demanded A movement along the demand curve that shows a change in the quantity of the product purchased in response to a change in price.

6. Two Reasons for Change

7. Income Effect The change in quantity demanded because of a change in price that alters consumers’ real income.

8. Substitution Effect The change in quantity demanded because of the change in the relative price of the product.

9. Change in Demand cont. If the price increases for each item demanded, the curve moves to the right.

10. Change in Demand cont. If the price decreases for each item demanded, the curve moves to the left.

11. Change in Demand

12. Consumer Income When your income goes up, you can afford to buy more goods and services vice-versa.

13. NORMAL GOODS vs. INFERIOR GOODS

14. Consumer Taste and Preference Advertising, news report, fashion trends, introduction of new products, and change in the season can affect consumer tastes.

15. Substitute Goods Demand for a product tends to increase if the price of its substitute goes up and vice-versa.

16. Example of Substitute Goods Coke and Pepsi ( If Coke goes up in price, SOME people will buy Pepsi as a substitute)

17. Complementary Goods When the use of one good increases the use of another.

18. Example of Complementary Goods Coffee and Sugar

19. Price Expectation People stocked up on items that weren’t scarce at that time because they were afraid, they may become scarce in the future; this created demand.

20. Population Increase in the number of consumers causes an increase in the market demand curve.

21. ACTIVITY TIME What to do? Create a team. Choose an envelope that has a question. Read quietly and analyze the question. Brainstorm and process the chosen question. Write your answer. For the role play 3 minutes to plan, and 2 minutes to play in front. RURBICS FOR THE ROLE PLAY IDEAS/KNOWLEDGE/THOUGHT - 15 POINTS ORGANIZATION/PRESENTATION - 5 POINTS TEAMWORK - 5 TOTAL -25

22. ASSESSMENT TIME

23. ASSIGNMENT

24. THANK YOU!