Economics Grade 10 - Demand
Overview
ECONOMICS GRADE 10
TOPIC: Introduction to demand
By the end of this lesson, learners should know how to:
- define Economics
- define demand
- state the law of demand
- list and discuss the factors which determine demand
- draw the demand curve using the demand schedule
- differentiate between changes in quantity demanded and changes in demand
Introduction to Economics
Welcome to Economics Grade 10!
I bet you are all as excited as I am to be a part of this fun and interactive lesson in Economics. What is Economics? How would you define it to a friend or relative?
After discussing or defining Economics by yourself, you can click on the attached links below to view the definition of Economics both in video and written format.
Economics
Table of Content
| Introduction to Economics | What is Economics? |
| Body - Demand | Demand and Law of Demand |
| Pre-activity | Factors that determine demand |
| Classwork activity | Position of the demand curve |
| Changes in quantity demanded and demand | Demand summary |
Definition of demand - Law of demand
Demand has to do with the willingness and ability to buy a good or a service.
It refers to the quantities of goods and services that a consumer is willing and able to buy at a specific price, in any given point in time.
Demand is determined by the buyer (consumer).
See attached images for the definiton of demand and law of demand.
Is the picture below illustrating demand? Why do you say so?
Factors that determine demand
Give the learners the corrections for the pre-activity:
- The quantities demanded for bread will decrease due to an increase in the price of bread. This means that bread has become expensive.
- Dineo will now buy less quantities of rice because she cannot afford more of it anymore since her salary decsreased from R3000 to R2000.
- They will demand more goods and services.
Below is a pictrue that shows illustrations of the factors that have an influence on demand.
You are also welcome to click on the link attached on this section that explains these factors that determine demand.
Pre-activity
Individual activity. Refer to what you have just read and heard about the factors that determine demand and answer the following questions:
- The price of bread increases from R10 to R15. What will happen to the quantities demanded for bread? (2)
- COVID-19 has had a negative effect on Dineo's salary which decreased from R3000 to R2000. What will now happen to Dineo's demand for rice if her salary decreases? (2)
- The population growth rate of South Africa has increased. Will the new members of this country demand to buy more or less goods? (2) TOTAL= 6
Position of the demand curve
CORRECTIONS FOR CLASSWORK ACTIVITY:
The position of the demand curve is downward slopping, from left to right. This is due to the law of demand.
When drawing a graph showing a demand curve, prices should be wriitten on the y-axis (from smallest to biggest price) and quantities on the x-axis (from smallest to biggest price). See the picture below to get a visual representation of the curve:
CLASSWORK ACTIVITY (DURING THE LESSON)
Use the demand schedule below to draw a graph showing a demand curve for chocolate bars. Label all axis carefully. (5)
| PRICE OF CHOCOLATE BARS (P) | QUANTITY OF CHOCOLATE BARS (Q) |
| R10 | 5 |
| R20 | 4 |
| R30 | 3 |
| R40 | 2 |
| R50 | 1 |
Changes in quantity demanded versus changes in demand
CORRECTIONS FOR THE HOMEWORK ACTIVITY:
- Substitute goods are goods that can be used in the place of other goods in order to satisfy a need or a want. Examples: tea and coffe. Complementary goods are goods that can be used together with other goods in order to satisfy a need or a want. Examples: toothbrush and toothpaste.
- The demand curve is downward slopping because of the law of demand.
4.
Changes in quantity demanded:
- Also known as 'movement along the demand curve'.
- Shown by the price of a good or service.
Changes in demand:
- Also known as 'shift of the demand curve'.
- Shown by the other factors of demand (such as level of income) besides the price of a good or a service).
The video below explains in detail the changes in quantity demanded and changes in demand. It also summarizes the content of this lesson. Click on the video below to watch it:
HOMEWORK:
Individual work.
- Differentiate between substitute goods and complementary goods. (4)
- Why is the demand curve downward slopping? (1)
- Price of meat decreases from R50 to R20. What will happen to the portions (quantities) of meat you will be buying? Illustrate this using your own graph. You can use your own quantities. (2)
- Sam's income increases from R2000 to R2500. Will Sam buy more or less litres of milk? Answer this question using a graph. (2) TOTAL = 9