In the past week we have defined demand from the point of view of an economist. In addition, we have demonstrated Demand as a function, as a table and as a graph. We have also described the types of factors that influence demand. Finally, we have described how to view these concepts at an individual level and at the population level.

Instructions:

1. Choose a good or service that interests you. For instance, a computer or a box of cereal.
2. Choose attribute that varies in terms for this product. For instance, computer laptops are a good choice since that are many varieties of this good that vary in price according to the amount of memory or disk space.
3. For each version of the good determine how many of that version you can get for $100,000. (For instance, if the computer with 256mbyte is $1000 you could buy 100 of them for $100,000 and if the 512mbyte computer is $2000 you could buy 50 of them for $100,000).
4. make a table using the pairs of prices and quantities derived in 5.3.
5. make a graph with the prices on the vertical axis and the quantities on the horizontal axis.
6. Repeat 5.3 - 5.5 using a budget of $10,000,000
7. make a paragraph regarding the shapes of the graphs.
8. What are the similarities between the two graphs?
9. Describe the Law of Demand.
10. Other than Price and Quantity what do you think might affect demand?