Supply and Demand Items Sent, What You Want, and Prices

UEQ and LEQ  UEQ: How has a market economy evolved in the U.S.?  LEQ: How can supply and demand impact prices in an economy, while forcing people to make decisions?

Vocabulary  Circular Flow  Supply  Demand  Decision  Goods  Services  Want  Need

Think-Pair-Answer  Consider the Scenario on page 375 of your textbook.  Read the scenario first paying close attention to prices, what is being sold, and reactions of people.  Pair up with a partner, read the questions together.  Fill in your personal opinion answers to the questions on the two columned graphic organizer.  Questions to consider.  What is being supplied? At what prices? Why?  What is being demanded? Why?  How might prices be affected by what people want and what businesses give them?

Supply and Demand Cartoon Fill in the Reciprocal Studying Handout…

The Beginning: Market Economy  Economy where people control, what they make, sell, and prices they charge.  Markets are at the center of this economy.  Brings buyers and sellers together to exchange good and services.

Major Market What is the message??? Mall Being Built Finding Religion in Malls

Demand  Amount people want to buy at different prices. (Goods and Services)  You balance benefits and costs with your demands.  Would you buy a car for $10,000?  Would you benefit more if you bought a car for $25,000?  Demand and Price Equations 1. Prices Demand = People Buy Less 2. Prices Demand = People Buy More Demand for Hybrid Cars

Demand Demand for Gas Ain't Bad

Supply  Amount of items businesses and business owners can and are able to sell at different prices. (Want to make a profit)  Owners balance benefit and cost of price changes and selling things.  Would customers buy more sneakers if they cost $59.99?  How would customers react to gas if it was over $5.00?  Supply and Price Equations 1. Prices Supply = Business Makes More $ 2. Prices Supply = Business Makes Less $

Supply Drug Supply

Supply and Demand=Price War  Price War is a war between businesses as they change prices to attract customers. (a.k.a Competition)  Reasons: Business was slow, things were not being sold, other business getting more customers

Competition Ever see the sign “Lowest Price Allowed By Law?” that is competition.

Competition Ever wonder why cars range from $10,000 up to $1,192,057?

Milk, Eggs, and Pickles  Consider simple things that you buy and eat in your life; milk, eggs, and pickles.  How can supply, demand, and prices be affected if scenarios surrounding these three items change?  Using the “Milk, Eggs, and Pickles” handout that I have given you, working in groups, each group will determine what will happen to supply, demand, and price if scenarios for all three items change.  Get into groups of five (at least)  Each group will be given a paper covered shoe box, with scenarios inside, each person is to take a turn pulling out one scenario and read the scenario out loud to the rest of the group.  As a group try and figure out what would happen to the supply, demand, and prices of the item being impacted by the scenario change.  Fill in the handout as you work together to determine what will happen to supply, demand, and price. Write your answers down on the sheet.

Prices  As you saw with supply and demand, when they change prices change.  Can give you different benefits but can cost you at the same time.  Read the article “Magic Number”  Why should businesses sell things at 99 cents?  What two business owners used the 99 cent idea? What businesses do they own?  Who started the 99 cent idea? Why do you think he started it?  What does 99 cents say to shoppers?  Why did the number of people buying margarine (butter) increase?

Supply, Demand, and Salaries  You are now going to look at how supply and demand in the job field can cause drastic changes in what people earn.  Have you ever wondered why people go to college and they make less than someone that plays sports or someone that works for a business their entire life? You will now see why.  Grab a laptop, log on and go to Google. Type in EconEdLink.  In the search bar click on the search button. In keywords type in Brett Favre, in subject click on Economics, click search.  The only web activity comes up, click on it and click on the green link in the blue box titled “Teacher’s Version”  Read over everything as you complete the short online web search and question answering, fill in the chart, and answer the questions on the worksheet.

Diamond-Water Paradox Why Do Humans Value the Non-Essential Item Over the Essential Item???

Athletes Vs. Other Workers Why pay someone more to entertain, instead of paying someone more whose job matters???

Exit Ticket  Consider what you just learned about supply and demand and how they both affect prices and salaries.  Answer the LEQ.  How can supply and demand impact prices in an economy and the salaries workers earn?