Demand - Curve & Diminishing Returns

Demand is often represented as the desire to have or own a certain item. Using this definition, anyone who would like to own a car could be said to demand one. In order for demand to be counted in the marketplace, however, the mere desire for a product is not enough.  This desire must coincide with the ability and willingness to pay. Only people that meet this criteria can be said to truly have demand. It is these individuals who will compete with others that have similar demands for the available products.

To illustrate demand we have two tools, the demand schedule and demand curve. The demand schedule is T-chart that shows quantity demanded at a given price. The demand curve uses the values provided by the the demand schedule to create a chart plotting the quantity demanded versus the price. While gathering precise data isn’t always easy, these tools provide a powerful method of analyzing the type of consumer demand for a product. Read more

Testing & the Inauguration

Economics class today provided an unusual combination and special opportunity today. The class demonstrated it’s master of chapter 2 objectives (economic systems and decision making).

Following our quiz and reviewing the results, our attention turned to the inauguration of the 44th President of the United States, Barack Obama. As is often the case, technical difficulties proved challenging and limited our viewing time, and yet we were able to watch a good portion of the events. See President Obama’s Inauguration (swearing in and speech) part 1, part 2, and  part 3 .

It will be interesting to see how the economy will react and the final version of the economic stimulus plan. Here is the official White House posting of the Obama Economic Agenda.

Homework: Read chapter 3, sections 1 & 2.