Demand

Year 12
 06/09/23

LESSON OBJECTIVES:
The demand curve and utility All can understand the definition of
demand
Most can understand the determinants of
1) Describe what is happening in the diagram demand
Do now Some can recognize the factors which
Starter shift the demand curve

5 minutes

KEY VOCABULARY:
Demand
Income
Complementary
Substitute
Normal goods
Inferior goods
2) Using a similar diagram, describe what Quantity
happens when the price of a good falls. Price
Achieving Excellence Together
2) Using a similar diagram, describe what happens
when the price of a good falls.
 Connections
Ceteris Paribus in context   and
Reasoning

Price

P1

D2

D1

Q1 Q2 Quantity
 Connections
The demand curve RECAP and
Reasoning
for a normal good
Ceteris Paribus in context  
Price Price

P1 P1

D2 D1

D1 D2

Q1 Q2 Quantity Q2 Q1 Quantity
 Connections
The demand curve RECAP and
Reasoning
for a normal good
Ceteris Paribus in context  
Price Price

P1 P1

D2 D1

D1 D2

Q1 Q2 Quantity Q2 Q1 Quantity
 Connections
The demand curve RECAP and
Reasoning
for an inferior
Ceteris Paribus in context  
good
Price Price

P1 P1

D2 D1

D1 D2

Q1 Q2 Quantity Q2 Q1 Quantity
 We Do!

10 minutes
RECA We Do!
P

Determinants of
demand
 We Do!

10 minutes
 Connections
•Utility is the idea that people gain a certain level of and
Reasoning
satisfaction/happiness/utility from consuming goods
and service.

•Marginal utility is the benefit of consuming an extra

unit

This utility is not constant.

We get diminishing marginal utility.

The first piece of chocolate cake gives more
utility than the 7th piece.
 Connections
and
Reasoning

In the above example, total utility (300) is maximised

after just four pieces of chocolate cake.

The fifth piece of chocolate cake gives zero marginal

utility, so we are indifferent between 4 pieces and five
pieces.

However, if we eat the sixth piece of chocolate cake, we

start to feel ill – and so we get negative utility.
 You Do!

5 minutes
 Plenary

Sum up in two sentences what

you have learned in this
lesson. Send in private chat.