1. Economics Learning Steps 8/15/12

2. Dream Book Journal Entry & Standard SSEMI2 Elasticity Review Quiz & SSEMI2 Test Review

3. Standards & Elements SSEMI2 The student will explain how the Law of Demand, the Law of Supply, prices, and profits work to determine production and distribution in a market economy. Elements: a. Define the Law of Supply and the Law of Demand. b. Describe the role of buyers and sellers in determining market clearing price. c. Illustrate on a graph how supply and demand determine equilibrium price and quantity. d. Explain how prices serve as incentives in a market economy.

4. Enduring Understandings Students will understand that: Prices send signals and provide incentives buyers and sellers. When supply or demand changes, market price adjust, affecting incentives.

5. Essential Questions 1. What is the point at which supply an demand come together? 2. What is it called when quantity supplied is not equal to quantity demanded ? 3. What is called when quantity demanded is more than quantity supplied? 4. What is the legal maximum that can be charged for a good? 5. When the quantity supplied is greater than the quantity demanded, what is the condition known as? 6. What is the government-controlled price ceiling on apartment prices called? 7. What is it called when the government sets a price floor on earnings. 8. Until 1996, the United States used price supports in agriculture by doing what to create demand? 9. What happens when any market is in disequilibrium and prices are flexible? 10. Why does a government place price ceilings on some “essential goods”?

6. Price “Example Flip Books” Ticket-Out-The Door Class Activities