The Law of Demand (NEW 2016)

Our study of market economies requires us to examine both the demand-side and the supply-side of product and resources markets. Buyers and sellers interact with one another to engage in mutually beneficial exchanges in a market economy, and prices are set based on the demand and supply for a particular good, service or resource. This video lesson presents the law of demand, and explains how the demand curve can illustrate this fundamental economic concept.

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28 thoughts on “The Law of Demand (NEW 2016)

  1. Factors that could increase the demand for Vespas:
    – New built in features that appeal to consumers (GPS, Sound System, etc…)
    – Better fuel efficiency
    – A variety of different Vespas are introduced (color, design, etc..)
    – Vespa sales are introduced in other countries in order to increase the number of consumers

    Factors that could decrease the demand for Vespas:
    – The release of a study which suggests Vespas are not safe
    – Age of Vespa driving is increased (reduced number of consumers)
    – New “cooler” scooter enters market
    – Significant decrease in average income in an area that sells Vespas

  2. Factors increasing demand for Vespas:

    – Rising gas prices (Vespas are more fuel-efficient)
    – New product with better features than previous generations
    – Government offers incentives for use of vehicles like Vespas (fuel economy standards changed, subsidies, etc.)

    Factors decreasing demand for Vespas:

    – Government regulatory changes (driving age, driving restrictions, helmet laws, etc.)
    – Vespas determined to be dangerous
    – No product innovation

  3. What do you like about the videos above?

    I liked that while you talked about a subject, I could see a visual representation (worked problem, graph, etc.) of it. I also like that there is an option to stop the video, rewind, and review a section if it was unclear the first time.

    What would you change about the videos above?

    I know that you are working on the audio quality, but otherwise, I don’t think there is anything that needs changing.

    What do you think about the idea of the “flipped classroom” model of instruction? Do you like the idea of watching video lectures at home and spending class time practicing and getting one on one help from your teacher? Why or why not?

    I think that doing a lesson “flipped classroom” style would be nice occasionally as a bit of a change. I wouldn’t, however, want to do this everyday. I like learning from people, and watching videos every night would become dull after some time.

  4. Factors increasing the demand for Vespas:
    1. Better and more powerful engines, also more environmentally friendly.
    2. Higher income of consumers or drop of oil and fuel prices.
    3. Completely new visual (eye-catching) design including a whole new range of colors and visual parts such a lights etc.
    4. Improved technical parts such as a more accurate speed display including a larger and saver storage room.
    Factors decreasing the demand for Vespas:
    1. If other large companies providing motorbikes such as Yamaha sell quality wise better bikes.
    2. Vespas are declared of being dangerous to drive, or law changes driving age (21+) and teenagers lose their dreams of driving at the age of 16.
    3. The Vespas aren’t being kept up to date and stop being trendy, fall behind with other bike companies in technology.
    4. Oil and fuel prices rising rapidly to not affordable prices.

  5. Factors that would increase demand for Vespas:
    1. Increased population. More people, more consumers that are likely to buy a vespa
    2. When the taxes are lower, costs of vespas will be less= more demand.
    3. When the gas/ oil prices reduce, costs will be less = more demand.
    4. Or just simply when the price of the vespa will become cheaper. This also incentivises more people to buy vespas.
    5. When for example, an economist tells about a prediction that the prices will become higher, the demand will increase, because consumers are going to buy the product BEFORE the prices will increase

    Factors that would decrease demand for Vespas:
    1. If the components of making a vespa become more scarce, prices will rise. This is a cause of decrease in demand.
    2. When the popularity of vespas become less –> old-fashioned.
    3. If the vespa company just had a great sale, afterwards the consumers wont be buying a new vespa, because they may already have bought one during the sale.
    4. If the law will be changed, concerning the age of driving a vespa. For example: the age limit from 16 will be raised to 21.

  6. Increased Demand:
    – New design (new colors, etc.)
    – Becomes more environmentally friendly
    – New model with improved functionality
    – Competitor forced to declare bankruptcy

    Decreased demand:
    – A competitor’s scooter is much more efficient, aesthetically pleasing, etc.
    – Scandal within the Vespa company
    – Better, cooler bike is introduced to the market
    – Scooter is declared unsafe, and does not work very well.

  7. Factors that would increase or decrease the demand for Vespas:
    Increase: 1) If government bans limits the use of cars in citys by law as it occured in London where there has been created a toll so traffic decreases. Demand for Vespers as a substitute will rise. 2) Cars need more oil and if oil price rises, vespas are more likely to be used instead because they need less fuel. 3) An area in which there is good weather all year long attracts more consumers for vespas. 4) New Vespas introduced which are electrical powered but still provide the same level of efficiency.

    Decrease: 1) A study shows that most deaths in accidents are with Vespas. 2) A law appears in which you have to be 21 in order to use a Vespa. 3) A fincancial crisis causes decreases willingness and ability to buy Vespas. 4) Weather conditions are really bad in the regions with cold winters and rainy summers.

  8. Increased Demand
    – Vespa’s become more environmentally friendly, reduced harmful products.
    – Vespa offers their bikes in a new range of colors.
    – One of Vespa’s main competitors declares itself bankrupt and exits the market, leaving consumers looking at alternative bikes such as the Vespa and therefore Vespa grasps a larger market share.
    – The national news announces this summer to experience great sun and this causes consumers to desiring open roof vehicles and bikes in order to make the most of the great weather.

    Decreased Demand
    – A substitute to the Vespa reduces one of its main costs which is passed of to the consumers as cheaper bikes.
    – The government is just about to announce a new tax on bike users.
    – Unemployment levels rise quite rapidly in a short period of time causing concerns off job loses and financial insecurity.
    – A review in a popular magazine highly recommends one of the Vespa’s competitors as a ‘the ultimate bike’.

  9. Factors that would increase demand for Vespas:
    – A marketing campaign that increases the popularity of Vespas
    – Making them more energy efficient/adding better features
    – Introducing Vespas to another country
    – A city redesigning its roads to be friendly to Vespa riders

    Factors that would decrease demand for Vespas:
    – Consumers becoming more environmentally aware
    – A shift in climate/weather patterns making it difficult to commute with a Vespa
    – Highly publicized Vespa crash
    – Consumer dissatisfaction due to false advertising

  10. Factors that could increase the demand of Vespa’s
    1) Vespa’s are suddenly becoming popular
    2) Income of consumers increases
    3) Study just been published about how little oil Vespa’s use compared to cars
    4) Number of consumers in Vespa market increases
    Factors that could decrease the demand of Vespa’s
    1) Oil prices increasing (people would rather ride bikes)
    2) Cheaper scooters in the market (competition
    3) Income of consumers decreases (economic crisis for example)
    4) Study that shows the danger of driving a Vespa’s, many accidents happen.

  11. Factors that could possibly increase the demand for Vespas:
    -Consumers have a higher income and are therefore more willing and able to purchase a Vespa
    -Substitues increase in price
    -improved fuel efficiency
    -Improved design features (GPS etc.)
    -increase in popularity of the Vespas

    Factors that could possibly decrease the demand for Vespas:
    -Consumers have a lower income and are therefore less willing and able to purchase a Vespa
    -Substitutes become less expensive
    -Sudden shift in Vespa popularity , making it unpopular
    -Cheaper/more expensive fuel prices (debatable)

  12. Factors that increase the demand for vespas
    -expensive oil
    -oli effieceny
    -eco-friendly energy run
    -Reduced production rate
    – integrated radio (stereo in helmet)

    Decreasing factors
    – Cheaper oil
    – Study declare Vespas pollut a lot
    – Vespas become less “in”
    – Another company releases a new “cool” oil-free bike

  13. Factors that could increase the demand for Vespas:
    – Built in GPS system
    – More storage space
    – Roof to keep driver dry
    – Better fuel efficiency

    Factors that could decrease the demand for Vespas:
    – A scandal within the Vespa firm
    – Studies indicating Vespas are not safe by design
    – No substantial features added to the good
    – Sudden turn in youth culture causes Vespas to fall out of style.

  14. INCREASE:
    Offer different colors.
    Faster Vespa.
    Special devices in Vespa.
    Safer Vespa.

    DECREASE:
    Same Vespa no new attraction to make Vespa sell.
    Same Vespa year after year.
    Same boring colors.
    Studies that show that Vespa doesn’t attract ladies.

  15. 1. What do you like about the videos above?
    I liked these video lectures as I could take notes on the graphs and information which you illustrated and talked about. Its a different way of learning about economics. It made it easier because if I missed some information I could always go back again and watch it again if something was unclear. Although in this video the descriptions were clear and easy to follow.
    2. What would you change about the videos above?
    Since the sound quality wasn’t very good it was hard to understand some of the information, but I could go back and listen to it again. However a better microphone would help. 😀
    3.What do you think about the idea of the “flipped classroom” model of instruction? Do you like the idea of watching video lectures at home and spending class time practicing and getting one on one help from your teacher? Why or why not?
    I like this idea a lot, we also started doing this in our math class and it makes it easier to learn about the ideas discussed in the video. It gives you time to take notes as in class you might end up in a hurry and miss some information. If the video includes complicated information it might be harder to learn by yourself rather than in class but for lectures like these I find it very helpful. As I am able to write down my questions at home and ask them during the following class.

  16. 1. What I like about the videos above is that as a student I can both listen and look at the graphs for example at the same time. I am personally a visual learner therefore being able to copy down the information into my notes will help me study for further tests or quizzes.

    3. I actually like watching videos alot better than having the lectures in class because one can go at ones own pace and take as many notes as one wants without a time limitation. I think this would be a good way of teaching in the future because it will allow us as students to write down more notes form the videos instead of havign class discussions that might also go off topic.

  17. Discussion Questions:
    1.What do you like about the videos above?
    I thought that the explanations were wonderful and easy to follow. The visual representatiosn and aid of the graphs definitely helped me in my understanding.
    2.What would you change about the videos above?
    The audio was of quite bad quality. Perhaps it was simply because of the computers audio and I could hear cars in the background at one point. Maybe it would be better to be in a quieter room next time with an external microphone.
    3.What do you think about the idea of the “flipped classroom” model of instruction? Do you like the idea of watching video lectures at home and spending class time practicing and getting one on one help from your teacher? Why or why not?
    I like this idea and I believe it helps, because one can learn in his/her own time which is the easy part, however, answering lingering questions and clarifying issues is more complicated and requires a experienced individual, who at the time is not present if one is doing the homework at home. Though, sometimes if the matter is too complicated, then I find it better to be taught through face-to-face communication.

  18. 1.

    I liked the videos because I thought they were easy to follow and understand as well as something new and different to your standard “chalk and talk”. The video also allows every student to work/learn at their preferred pace as pausing, re-watching and skipping sections is possible

    2.

    The sound quality sometimes made it difficult to understand certain words so enhancing that would definitely make the videos more effective.

    3.

    Although it is certainly an interesting idea with some pros, I am generally not a big fan of the”flipped classroom” for several reasons. Firstly, I think taking notes during theses lectures is inefficient as I found myself constantly flipping between the video screen and my onenote which took up a lot of time. Secondly, the possibility to ask questions during a lecture is eliminated by video meaning that students can not get clarification on certain concepts which may lead to uncertainty as to whether or not we (the students) are fully grasping different terms and concepts (which is often times the case when learning something completely new). Lastly and perhaps most importantly, I believe that an explanation in person is far more effective than a video. While I am highly motivated to learn during a lecture in which someone is speaking directly to me, it was far easier to lose concentration and wander off task during the video lecture as it got sort of repetitive after a while making it harder to stay engaged.

  19. 1. I enjoy the way that the video is very engaging compared to just reading a blog post, or from a textbook. This makes the concepts much easier and more interesting to understand and learn.

    2. The audio quality could definitely be improved by a lot – it was hard to understand what was being said at some points during the video.

    3. I am intrigued by the flipped classroom idea, and I think that it might be a nice change from the other classes – also, it would be easier to do assignments in class, where one would always be able to ask the teacher questions about either the lecture or the assignments that have to be done. I am not entirely convinced yet, but I think that it’s mostly just a matter of trying the concept out some more before I can really figure out if I like it or not.
    The flipped classroom idea is definitely less traditional, and I think it would make for a good thing to try out, but I do believe that it should still be balanced between regular classes and flipped ones. The balance issue is one that would be solved eventually after testing the system out for a while.

  20. What do you like about the videos above?
    In my opinion, these videos are a great way of teaching fundamental concepts. They allow us to work and learn at our own pace, as well as take leisurely notes without feeling rushed. Also, they allow us to pause and re-listen to the exact information in the lecture. Often, a teacher might not remember exactly what they had just said, giving one student more accurate information than another who might have asked for the statement to be repeated. The videos explain the concepts very clearly.

    What would you change about the videos above?
    The only complaint I would have about these videos are the sound quality, but hopefully that can be fixed for the next lessons. It was often difficult to understand words or phrases and I would have to go back and listen to them a couple times in order to fully grasp the concept and what was being said.

    What do you think about the idea of the “flipped classroom” model of instruction? Do you like the idea of watching video lectures at home and spending class time practicing and getting one on one help from your teacher? Why or why not?

    There are many advantages and disadvantages to the “flipped classroom” model of instructions.
    Advantages:
    Very simply, this model allows students to work at their own pace and be in the comfort of their own homes or more favorable study environments. I think that it also allows for time to be saved in class. The time could then be spent more effectively, doing example activities and simulations in order for the students to fully grasp the lesson after learning the fundamentals. Personally, I also find it much easier to take notes like this as I have much more time to write down everything and anything that I find important instead of feeling rushed to write down as much as possible and not miss any further points of information.

    On the other hand, this model presents disadvantages in terms of questions, time, and homework. If a question arises on one of the concepts within the lecture, the student will have to save it for a later time. The problem with this is that, firstly, the student might forget their exact question, and secondly, they might not understand the rest of the video because of not understanding a fundamental concept. Also, if a student does not understand something, listening to the video again will only be repeating the exact same information. In class, the teacher could think of a different way of explaining it for it to make more sense. The issue with homework is that, if practicing in a classroom environment, there will always be someone (teacher or classmate) who will be able to help or answer a question. However, on quizzes or tests, this will not be the case. Homework helps the student prepare for working and problem solving individually to the best of their ability.

    To sum it up, I personally think that using these lessons to learn the fundamental concepts and then practicing further in class as well as getting one on one help is much more effective as it will make sure that each and every student grasps the concept at their own pace. We all have different styles of learning, and I think that this would allow us to be able to apply those styles in a way that we feel comfortable.

  21. 1. I think that the idea of a video lecture is really helpful because you can always go back to a point that you feel you didn’t quite understand and you want to repeat. It’s also useful for students, who already know parts of the topics, because a video lecture allows them to skip certain parts they already know.
    2. As almost everybody pointed out, the sound quality of the video wasn’t really good and made it hard to understand at some points, especially at the end of part 2. But overall I think there is not really a lot that can be changed, since pace and clarity of the lessons were already sufficient.
    3. Like Prahnav, I also feel that I could receive the same information at home using the book, but I think that the more practice there is done on each topic, the better is the learning outcome. Questions can also be ask during the lesson while attempting the practice questions. The only negative thing about this is that students might ask questions to early and not use the practice efficient enough. As Prahnav pointed out correctly, it might be harder to develope confidence on solving problems on your own.

  22. 1. I think that these videos are helpful notes for the students who have already heard the lesson before. I have already heard this lesson live and after hearing this again, I was able to recap the essential points of the lesson more directly and quickly.

    2. While watching these videos, the voice clarity was not very high, which made it tough to understand what was being said at times. I am not sure if a microphone was used, but maybe that would help improve the voice content. That was the only problem I had.

    3. I feel that I could have received this same information at home using the textbook. Thus for me, I would benefit more if the lesson was done in class where I could ask questions regarding the concept taught and then practice questions at home to test my understanding. I would rather get one to one help on understanding the concept more than with homework questions because this will help me develop confidence on solving problems more.

    – Prahnav

  23. 1. What do you like about the videos above?
    I believe that using the “flipped classroom” model instruction helps students who are visual learners more. I feel that students will engage more while listening to the video. Students can also take notes whilst listening and they can pause the video if they are having trouble understanding the concept.
    2. What would you change about the videos above?
    Maybe for the video lessons in the future, the sound quality can be improved which I know that you are working on, but besides that I don’t think there was a problem.
    3. What do you think about the idea of the “flipped classroom” model of instruction? Do you like the idea of watching video lectures at home and spending class time practicing and getting one on one help from your teacher? Why or why not?
    I think that this idea about using “flipped classroom” will benefit most students. I think so because students can watch the video lectures after school and then ask questions if they have trouble with it the next day. This will allow students to ask questions regarding the video during class time. I personally would like to watch lectures at home and ask questions regarding the matter in class. If students didn’t listen well or if they forgot something about a certain concept, they can always come back to the video lecture and replay what they missed.
    All in all I think that you should continue to teach us using the video lectures.

  24. 1. Hi Mr. Welker. i think the video lessons are a great idea for to add a bit of variety in how we learn economics over the next two years. in my opinion, i like this video lecture, because i can pause it when i need to give what is being said some thought without losing track of what is being said, therefore i can easily alternate between listening and thinking about what i am learning.
    2. at some points during the video however i did struggle to make out what was being said, the audio got a bit distorted and hard to follow.
    3. personally i prefer the normal lesson model, rather than online lectures because i am not really all that technical, and prefer the traditional lessons. however i can see how this new way would be beneficial and useful.

  25. 1. What do you like about the videos above?

    The videos were well structured and explained, making the lecture efficient and allowing each person to listen and understand and their own pace. The video format eliminates the usual procedure of stopping a lecture for people to ask questions. For those who don’t have questions, this saves time.

    2. What would you change about the videos above?

    I found that the sound quality of the videos was not very high, making it quite difficult to understand the words at times.

    3. What do you think about the idea of the “flipped classroom” model of instruction? Do you like the idea of watching video lectures at home and spending class time practicing and getting one on one help from your teacher? Why or why not?

    I find that the “flipped classroom” model has its pros and cons.
    On one hand, a video allows students to move through the lecture at their own pace. It can make learning information more efficient, and would allow students to practice skills during class under the guidance of a teacher.
    However, I have some issues with this method of teaching.
    Personally, I’m not sure I like listening to a video explanation. It means more time spent sitting and staring a computer screen, which I do enough of already. There’s also something different about listening to a recorded voice rather than having an explanation in person, which somehow is not as effective for me. In addition, I find it more difficult to take notes while watching a video as opposed to listening to a person.
    Although the “flipped classroom” model would allow students to ask the teacher a question in class later on if they don’t understand, this might also lead to wasted time. If a student doesn’t understand a fundamental concept, the rest of the video will not make sense. In the event that the teacher has to explain it over again in person, there was no point to listening to the video in the first place. Of course, a confused student may replay the video to try and reach comprehension. But the video will always say exactly the same thing each time it is replayed, whereas in a classroom situation, if the teacher senses confusion he/she can try to explain the same concept in a different way.
    In response to the idea of doing “homework” in class to practice skills in an environment that offers one on one instruction, I would question why this is necessary. Of course, it is very convenient to be able to clarify a question right away and be able to resolve difficulties with an assignment or question. But often isn’t the point of homework to practice skills you have learned by yourself in order to see how well you understand? No one will be standing next to you to answer your questions when you take a test. Sometimes if you don’t understand a question, you just have to be creative and work through it the best you can, and it’s important to have practice with that.
    To sum up, I find this method of teaching an interesting idea, but I’m not convinced of its potential for success.

    • Excellent feedback, everyone! This is exactly what I was looking for: honest, thoughtful ideas on the value of this concept for teaching economics. I look forward to hearing everyone’s thoughts in class on Tuesday.

      Just so everyone knows, I am definitely aware that the audio quality is poor. I decided to make these around 6:00 pm on Friday, and I only had my tablet and the built in mic. For my next video, I will make sure I have a good external microphone.

      Thanks again, see you all on Tuesday!

  26. 1. What do you like about the videos above?
    I like the videos a lot, as they allow students to work at their own pace. In a classroom, a teacher has to tend to about 20 students, and can not stop and repeat every little thing for those who are confused during a lesson. By putting the lectures into a video format, students can pause and rewind the lecture, resulting in a perhaps enhanced learning experience, as they can listen to segments of the lecture multiple times or pause and think about what has been said, and resume when the concepts are fully grasped.

    2. What would you change about the videos above?
    My only complaint about the videos is the sound quality, but that is just a minor issue.

    3. What do you think about the idea of the “flipped classroom” model of instruction? Do you like the idea of watching video lectures at home and spending class time practicing and getting one on one help from your teacher? Why or why not?
    I believe the “flipped classroom” model is a very viable option for instruction, for the reason stated in response to discussion question number one, but also because students are given more face time with their teacher. If a student does not understand something after listening to the lecture, they can ask about it in class the next day. Then, the class could get onto practicing the newly learnt concepts or skills, with the option to ask the teacher for help if one is having difficulties. If the students were at home working, they may encounter something in the assignment they do not understand and thus not be able to complete their homework, something that could be avoided in the utilization of this “flipped classroom” model. All in all, I am quite fond of this model of instruction, and would not mind it being implemented into our curriculum.

  27. Hi Mr. Welker,

    I feel that the ‘video lecture’ engages students more than if we had to just read a blog. Usually, anything visual will draw our attention, but I feel that as a substitute for a class, it is different. In classes, we can ask questions when we don’t understand and we get answers immediately. Also, the explanations are clear, while with the video, although it is better than no class, I felt that it was hard to understand your speech – not because of you, but because the build-in microphones are not of a good quality.

    Personally, I think that this idea of using videos to teach and get ideas across to a student is effective, but I think that you should use it for your blogs, not classes. I like the fact that in class we do activities, such as buying and selling resources. I like the classes how they are right now, but I wouldn’t mind trying your new system for a few days, just to see what it’s like.

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