Download Economics Unit 2 Chapters 5-7 Chapter 5 Summary Demand and

Economics
Unit 2
Chapters 5-7
Chapter 5 Summary
Demand and supply are the two forces that make market-based economies work. Demand reflects what
consumers are willing and able to purchase at various prices. Price is related to the quantity of goods
that consumers want and procedures will provide, with many variables playing a role (economic downturn).
Objectives
At the conclusion of this chapter, students will be able to…
 Understand how demand and price interact.
 Identify reasons for changes in demand.
 Understand how supply and price interact.
 Evaluate the impacts on supply.
 Define demand elasticity and the factors that influence it.
 Define supply elasticity and the factors that influence it.
Plan
Day 1
 Define Vocab terms
 Chapter 5 PPT Part I
 Learning Log
Day 2
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Chapter 5 PPT Part 2
Group Questions
Quiz Chapter 5
Learning Log
Vocab
Demand
Law of demand
Substitute good
Complementary good
Supply
Law of supply
Revenue
Elasticity
Questions
1. How do demand and price interact?
2. What can cause demand to change?
3. How do supply and price interact?
4. What can cause supply to change?
5. What is demand elasticity and what factors influence it?
6. What is supply elasticity and what factors influence it?
Chapter 6: Markets, Equilibrium, & Prices
Summary: In a free market, demand and supply automatically moves prices to equilibrium, the point at
which quantity demanded equals quantity supplied.
Objectives
At the conclusion of this chapter, students will be able to…
 The impact of when demand meets supply.
 Examine what happens when the price “isn’t right.”
 Evaluate the impact of shifts in supply and demand.
 Analyze the role prices play in a modern mixed economy.
 Examine the role of government intervention.
Plans
Day 3
 Vocab
 Chapter 6 PPT
 Learning Log
Day 4
 Questions
 Quiz
 Learning Log
Vocab
Market Equilibrium
Equilibrium price
Equilibrium quantity
Price controls
Price floor
Price ceiling
Rationing
Black market
Questions
1. What happens when demand meets supply?
2. What happens when the price is not “right?”
3. How do shifts in supply and demand affect markets?
4. What role do prices play in a modern mixed economy?
5. How does government intervention affect markets?
Chapter 7: Market Structures and Market Failures
Summary: There are four basic market structures, each with different characteristics. Because only one
of these structures is perfectly competitive, economists classify the other three as examples of
imperfect competition and, therefore, as market failures.
Objectives
At the conclusion of this chapter, students will be able to…
 Understand what happens when the market does not operate perfectly.
 Understand the differences between perfect competition, monopoly, and oligopoly.
 Identify the differences between private and public goods.
Plans
Day 5
 Vocab
 Chapter 7 PPT
 Learning Log
Day 6
 Questions
 Quiz
 Learning Log
Vocab
Market Structure
Perfect Competition
Monopoly
Oligopoly
Monopolistic competition
Market Failure
Externality
Public Goods
Questions
1. What is a monopoly and why are they illegal in the U.S. economy?
2. What is better for the U.S. economy…Private Goods or Public Goods? Explain your response.
3. What is global warming? What causes it? What is the best way to address it?
Plans
Day 7
 Unit Summation Activity
 Unit 2 Test
Summation Activity: Look at the cartoon below and answer the questions.
1. What is the main idea in the cartoon?
2. What does the cartoonist think about tax cuts? Explain.
3. Do you agree with the cartoonist’s opinion about tax cuts? Explain your response.