Economics Bell Ringer Monday 11 21 2011 1 Number your

Economics Bell Ringer Monday, 11/21/2011 1. Number your handouts and pick up a cup of snacks. You must choose from: pretzels, animal crackers or cheese puffs. YOU MAY EAT ONLY ONE TYPE SNACK AND CANNOT DRINK ANY LIQUIDS 2. Setup a table and graph on the graph paper: 1. 2. 3. Table: the first column should be for the number of cups of snacks you eat and the second column should be the marginal utility of each cup of snacks you eat Graph: the x-axis (horizontal) should be labeled cups and start at 0 and go up to at least 5. The y-axis (vertical) should be labeled utility and should go from 0 to 10. During the rest of the period, enjoy as many cups of snacks as you like (BUT NO LIQUIDS) and keep track of your utility by rating your enjoyment from 1 to 10 (10 is highest) in both the table and the graph

Economics Bell Ringer Tuesday, 11/22/2011 1. Describe what you observe in the graphs 2. How many slices does Ashley demand at $4. 00 per slice 3. How many slices does the Market demand at $2. 00 per slice

Economics Bell Ringer Wednesday, 11/23/2011 1. Identify the Key Term: KEY TERMS (Can be used more than once) 1. Substitution effect 2. Individual demand schedule 3. Demand curve 4. Law of demand 5. Income effect 6. Market demand schedule 7. Demand schedule

Economics Bell Ringer Wednesday, 11/23/2011

Economics Bell Ringer Monday, 11/28/2011 1. Today is Cyber Monday, where online retailers provide discounts or free shipping to holiday shoppers. Explain the effect on demand for online goods. 2. How does advertising affect demand for a product?

Economics Bell Ringer Tuesday, 11/29/2011 1. The Euro, the common currency used by many European countries, is in danger of collapsing. The decrease in the value of the Euro has lowered the prices for European goods that we buy in the US. Examples of some goods include fashionable clothing from Italy, high technology machines from Germany, agriculture (wine, cheese, meat) from France. – Explain how the collapsing Euro may affect demand for these products in the US (USE KEY TERMS)

Economics Bell Ringer Wednesday, 11/30/2011 1. What factors other than price may cause demand to change? – Will these factors cause demand to rise, fall or both?

Economics Bell Ringer Thursday, 12/01/2011 1. Pick one of these products. Name three substitutes and three complements for that product • Orange pop • Concert tickets • Pizza 2. If the demand for one of the complements you listed goes up, what would happen to demand for the original good? Why?

Economics Bell Ringer Friday, 12/02/2011 1. For each situation, determine if demand will change because of the law of demand or because of a shift in demand. If because of a shift in demand, identify the factor (demographics, income, preference, etc. ) – Sales of winter coats have gone up 35% in the last month. At the same time, sales of hats and gloves went up by 25% – With the return of the NBA, fans are seeing more commercials with their favorite NBA stars. Demand for Gatorade increased this week. – Subway restaurant has released a new promotion where customer can get 2 footlong sandwiches for the price of 1 sandwich, the “ 2 for $5” deal. They observe their stores have sold 20% more sandwiches.

Economics Bell Ringer Monday, 12/05/2011 1. How will advertising most likely lead to a shift in the demand curve? a) b) Influencing consumer tastes/preferences c) 2. Increasing demand for inferior goods Leading to a shift in demographics How can expectations about the future change consumer behavior today? a) b) Demand will increase if prices are expected to fall c) 3. Demand will increase if the good is expected to be plentiful Demand will increase if prices are expected to rise The price of Samsung TVs was reduced 40% for the holiday season. Sales for Sony TVs drops 30%. Does this change reflect law of demand or shift in demand? Why?

Economics Bell Ringer Friday, 12/09/2011 1. Sales of snow tires have increased 30% recently as Chicagoans are getting ready for the winter. Because of this, sales of shovels and ice scrapers has increased 25%. Is this due to the law of demand or a shift in demand? Why? 2. Car dealers have extra inventory by the end of the year. In order to increase sales, they reduce the price on their vehicles for the holiday season. Is this due to the law of demand or a shift in demand? Why? 3. Sales of HP laptops have increased 50% as they are offering a steep discount during the holidays. Sales of Mac computers have decreased 20% during this time. Is the change in demand for Mac computers due to the law of demand or a shift in demand? Why? 4. Pick a product and explain whether your demand is elastic or inelastic (remember: are there substitutes? How much of your budget do you spend on this? Is this good a luxury item? )

Economics Bell Ringer Monday, 12/12/2011 1. Identify the Key Term 1. #58: Bell Ringer Wk 15 (12/12 -12/16) consuming less of a good and more of another as a reaction to a price increase Substitution effect (under law of demand bcs price increase caused change in demand) 2. good that consumers demand less of when their incomes increase Inferior Goods 3. change in consumption that results when a price increase causes real income to decline Income Effect (law of demand) 4. not very sensitive to price changes 5. concept that satisfaction decreases with increased consumption of a good or service Inelastic Demand Law of Diminishing Marginal Utility 2. What factors would cause demand to be more inelastic? Product is a need/essential; Product perceived as a luxury item; Not a lot of substitutes available

Economics Classwork Monday, 12/12/2011 1. You MUST work on one of the following – Ch 4 Project (Ad and Mktg Presentation) (DUE Wed) – Study for Ch 4 Test (Tuesday) 2. YOU MAY NOT WORK ON – College Apps or work from another class 3. If you are off task, you get ONE WARNING before you lose computer privileges. Off-task includes 1. Working on non-Econ stuff 2. Visiting inappropriate websites (Twitter, games, MP 3/music sites, etc. ) 4. TURN IN 1. Bell Ringer from last week 2. Elasticity Handout HW

Economics Bell Ringer Friday, 12/09/2011 1. Test, fill out reflection