Economics Learning Steps 1/23/13

Complete Fundamentals of Economics Unit 1 Test Review

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.

Enduring Understandings Students will understand that according to the law of demand, people buy less of a good when its prices rises and that demand schedules and demand curves illustrate how people and markets react to different prices.

Essential Questions 1. What is the Law of Demand? 2. What is an income effect? 3. Why does an economist use a market demand curve? 4. What is the effect of the interaction of buyers on a market? 5. What does it mean when an economist say that a consumer has a demand for a good or service? 6. How do economist measure the consumption of a good? 7. How does the substitution effect work when the price of an item drops? 8. If prices rise and income stays the same, what is the effect on demand? 9. What is a market demand schedule? 10. What is the substitution effect? 11. What are normal and inferior goods? 12. What are complements?

Video Analysis “Fundamental Economic Concepts” Ticket-Out-The Door Class Activities

Team Study “Economics Clock Partners” Creation Ticket-Out-The Door Class Activities