Demand Dynamics: Shifts vs. Movements

Economics Grades High School 8:27 Video
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Lesson Description

Explore the crucial distinction between a change in demand (shifting the entire curve) and a change in quantity demanded (movement along the curve). Learn to identify factors that cause each type of change.

Video Resource

Change in demand versus change in quantity demanded | AP Macroeconomics | Khan Academy

Khan Academy

Duration: 8:27
Watch on YouTube

Key Concepts

  • Demand
  • Quantity Demanded
  • Demand Curve
  • Shifts in Demand
  • Movements Along the Demand Curve
  • Non-Price Determinants of Demand

Learning Objectives

  • Students will be able to differentiate between a change in demand and a change in quantity demanded.
  • Students will be able to identify factors that cause the demand curve to shift (change in demand).
  • Students will be able to explain how changes in price affect the quantity demanded (movement along the demand curve).
  • Students will be able to analyze real-world scenarios and determine whether they result in a change in demand or a change in quantity demanded.

Educator Instructions

  • Introduction (5 mins)
    Begin by reviewing the basic concepts of supply and demand. Briefly discuss the demand curve and the law of demand. Introduce the learning objectives for the lesson.
  • Video Viewing and Note-Taking (15 mins)
    Play the Khan Academy video 'Change in demand versus change in quantity demanded'. Instruct students to take notes on the key differences between changes in demand and changes in quantity demanded, as well as the factors that cause each.
  • Guided Discussion (15 mins)
    Facilitate a class discussion to clarify any confusion about the concepts presented in the video. Use the discussion questions below to guide the conversation.
  • Interactive Exercise: Scenario Analysis (20 mins)
    Divide students into small groups and provide them with a set of scenarios (similar to those in the video). Ask each group to analyze the scenarios and determine whether they represent a change in demand or a change in quantity demanded. Have groups share their findings with the class.
  • Wrap-up and Assessment (5 mins)
    Summarize the key takeaways from the lesson. Administer the multiple-choice and fill-in-the-blank quizzes to assess student understanding.

Interactive Exercises

  • Demand Curve Shift Simulation
    Use an online economics simulation (e.g., from Aplia or similar) that allows students to manipulate factors affecting demand and observe the resulting shifts in the demand curve. Students can experiment with changing consumer income, prices of related goods, and consumer expectations to see how these factors influence demand.

Discussion Questions

  • What is the difference between demand and quantity demanded?
  • What factors can cause the entire demand curve to shift?
  • How does a change in price affect the quantity demanded?
  • Can you provide real-world examples of events that would cause a change in demand for a particular product?
  • How does understanding the difference between these two concepts help us analyze market trends?

Skills Developed

  • Critical Thinking
  • Analytical Skills
  • Economic Reasoning
  • Problem-Solving

Multiple Choice Questions

Question 1:

A decrease in the price of a good will lead to:

Correct Answer: A movement along the demand curve.

Question 2:

Which of the following will cause a shift in the demand curve for cars?

Correct Answer: An increase in consumer income.

Question 3:

If consumers expect the price of a product to increase in the future, what will happen to the current demand for that product?

Correct Answer: Demand will increase.

Question 4:

A change in quantity demanded is caused by a change in:

Correct Answer: The price of the good.

Question 5:

If the price of gasoline increases significantly, what is the likely effect on the demand for large, gas-guzzling vehicles?

Correct Answer: Demand will decrease.

Question 6:

Which of the following is NOT a factor that shifts the demand curve?

Correct Answer: Changes in the price of the good itself.

Question 7:

A decrease in consumer income, assuming the good is a normal good, will cause:

Correct Answer: The demand curve to shift to the right.

Question 8:

The demand curve illustrates the relationship between:

Correct Answer: Price and quantity demanded.

Question 9:

If the price of a substitute good decreases, the demand for the original good will:

Correct Answer: Remain unchanged.

Question 10:

What does a shift to the right in the demand curve indicate?

Correct Answer: A decrease in quantity demanded.

Fill in the Blank Questions

Question 1:

A change in __________ leads to a movement along the demand curve.

Correct Answer: price

Question 2:

Factors other than price that affect demand are known as __________ of demand.

Correct Answer: determinants

Question 3:

When consumer incomes rise, the demand for __________ goods increases.

Correct Answer: normal

Question 4:

Goods that are used together are called __________.

Correct Answer: complements

Question 5:

An expectation of higher prices in the future will __________ current demand.

Correct Answer: increase

Question 6:

A graphical representation of the relationship between price and quantity demanded is called a __________.

Correct Answer: demand curve

Question 7:

A shift in the demand curve is called a change in __________.

Correct Answer: demand

Question 8:

When the price of a complement good increases, the demand for the original good will __________.

Correct Answer: decrease

Question 9:

Changes in consumer __________ can shift the demand curve.

Correct Answer: tastes

Question 10:

The __________ states that as price increases, quantity demanded decreases, all other things being equal.

Correct Answer: law of demand

Educational Standards

SOC.9-12.E.3.1:Analyze how price and non-price factors affect the demand and supply of goods and services available in the marketplace. SOC.9-12.E.1.1:Define and apply basic economic concepts of money supply, scarcity, surplus, choice, opportunity cost, cost/benefit analysis, risk/reward relationship, incentive, disincentive, and trade-off to a variety of economic situations. SOC.9-12.E.10.3:Explain how changes in supply and demand cause prices to change and in turn, cause buyers and sellers to change, including changes in price of productive resources and technologies used to make the product, profit opportunities available to producers for selling other products, number of sellers in a market, consumer incomes, consumer options, and the number of consumers in a market.

Teaching Materials

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