Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Supply and Demand
Document related concepts
Transcript
I can DEFINE supply and demand and understand how, together, they determine MARKET PRICES 2 functions in a ◦ ◦ (Demand) (Supply) Demand – Define Supply – Define Market Economy – Voluntary Exchange ◦ Seller’s problem of ◦ Buyer’s problem of Demand/Supply SHOWS Cause/Effect with relation to I can DEFINE supply and demand and understand how, together, they determine MARKET PRICES I can describe the LAW OF DEMAND and what FACTORS affect Demand PRICE GOES DEMAND GOES PRICE GOES DEMAND GOES Demand – Inverse Relationship Other Factors that affect Quantity Demanded: ◦ Real Income Effect ◦ Substitute Effect ◦ Law of Diminishing Marginal Utility Cannot buy ◦ Known as real income effect on demand Forces Trade-offs Real Income = Works in Opposite also 2 items nearly the same – Price of one goes up people will buy other Define – Utility People decide to buy goods based on Utility Law of Diminishing Marginal Utility I can describe the LAW OF DEMAND and what FACTORS affect Demand I can CREATE and INTERPRET a Demand Curve Demand Schedule – Demand Curve – I can CREATE and INTERPRET a Demand Curve I can identify Factors that cause a Change in Demand Changes in Changes in Changes in Substitutes Complementary Goods I can identify Factors that cause a Change in Demand I can explain elasticity of demand and the difference between elastic demand and inelastic demand products Elasticity – Define Elastic Demand – Examples of Products Inelastic Demand – Examples of Products Substitutes How much you budget for the good ◦ Smaller percentage budgeted = ◦ Larger percentage budgeted = Amount of to prepare for change I can explain elasticity of demand and the difference between elastic demand and inelastic demand products I understand the Law of Supply I can Graph and Interpret a Supply Curve Law of Supply – DIRECT RELATIONSHIP Profit Incentive at Work Cancer Video Supply Schedule – Table showing quantities supplied at different possible prices. Supply Curve – Upward sloping line that shows the quantities supplied at each price. I understand the Law of Supply I can Graph and Interpret a Supply Curve I can identify factors that cause the Supply Curve to shift right (increasing) or shift left (decreasing) Price ◦ Raw materials, LABOR, Energy, Rent/Lease/Mortgage Technology I can identify factors that cause the Supply Curve to shift right (increasing) or shift left (decreasing) I understand the interaction of Supply and Demand in a market economy. ◦ To Consumers AND Producers ◦ Can lead to Rationing or Black Market ◦ Minimum Wage!! I understand the interaction of Supply and Demand in a market economy.
