1. You’re the Boss!
Today, you’re teaching yourself! Read through the following slides. Complete the required task set on each slide. You may or may not choose to make notes to help assist your understanding/studying.
You MUST complete all the required tasks before the end of class today. Please let Mrs. Jans know where you ended when time ran out….this may or may not be a homework task!

2. Scenario
The first day of spring is fast approaching and you have earned enough to go and purchase a new spring coat. All of your friends have been talking about the new style of coats that are in style right now.
 You anxiously wait for the weekend when you have planned to go with your friends and spend a day at the mall shopping and, of course, purchasing that special jacket. However, Saturday arrives, and the mall is jam packed. There are lineups at the cash register, and you arrive just in time to see the last jacket removed from the rack. You are informed that the jackets are sold out. There is not a store in the mall that has any jackets of that style left. As a matter of fact, every store in town has sold out of the jackets.  
The supply of jackets was not enough for the demand. The wants were more than what was available. This kind of problem happens every day. It is called scarcity. Scarcity comes from the word scarce, which means it isn’t always available. Because the demand for the jackets was greater than the supply, the jackets were scarce.
 Scarcity happens when peoples’ needs and wants are not met because there is a shortage or lack of a desired good or service

3. Vocabulary: supply: how much of something is available
demand: how much of something that people want
scarcity: in economics, the idea that land, labour, and capital limit the supply of what people want and need; limited resources and unlimited wants

4. Review:
Think about your needs and wants. Scarcity, in economic terms, occurs when there are unlimited wants and limited resources. Most things that people need or want are limited because there are limited resources available.
Factors of production are the resources needed to produce goods and services. The term production refers to the producing of goods and services. The resources of land, labour, and capital are called factors of production and used to produce the goods and services.

5. Factors of Production:
The first factor, land, refers to the natural resources or raw materials that are used to produce the goods and services found in the primary industry.
The second factor of production is labour, which is the work done by individuals. In secondary industry, labour would consist of turning raw materials into finished products.
Labour is also found in tertiary industry; labour includes services provided to society. When producing goods, the producers combine the factors of production. When producers cannot produce enough of a good to meet the demand, scarcity is created.

6. GAME TIME!
Try the Land, Labour, Capital drag and drop activity to test your understanding of the factors of production! mm/m4/ss09_m4_s1_l2_06_landcap/ss09_m4_s1_l2_06_landcap.htm l

7. Scarcity!
Unlimited needs and wants and limited resources result in scarcity. To solve the problem of scarcity, all societies must answer three basic economic questions. 1. What goods should be produced? 2. How should these goods be produced? 3. For whom should the goods be produced? How a country answers these questions determines the type of economy the country has and the quality of life that the society experiences.

9. Textbook: Economics in Action p.199-201
After reading, think about a response to the questions on page 201
Discuss your answers with the person next to you
Were you able to better understand about scarcity, needs and wants, goods and services, and factors of production?

10. When you answered the questions, you should have considered the following:
The game manufacturer was unable to supply enough games because of the demand. Maybe the game manufacturer was unable to get enough parts to build the games, or the manufacturer controlled the amount of product released to build a demand. This is what Nintendo did with the Wii. By not producing enough games, there was a scarcity for consumers. In this way, the company created a fake demand for the product.
The truckers may have gone on strike because of the increased costs they incurred such as high fuel prices or to protest labour issues such as non-union workers taking the jobs of union employees.
The store may have decided to sell the game for less to have a monopoly on the market; once customers are in their store, they may purchase other more expensive products.
People may purchase an item at a higher price because of demand or peer pressure to have the game.

11. Sooooo….in this example….
Supply is about producing things consumers want. Demand is about what the consumer wants. In the case of the Super Cyborg City game, consumer choices were driving the sales of the game.

12. Supply is about producing things consumers want
Supply is about producing things consumers want. Demand is about what the consumer wants.
In a market economy:
consumer choices drive all economic decision making.
characterized by competition. Buyers compete with buyers; sellers compete with sellers.
private sector owns and controls all of the businesses. (Supply and demand is based on consumer choices.)
In a mixed economy:
consumer choices drive a lot of the economic decision making.
public sector removes the role or need for consumers to be concerned about all of their needs. (An example of this would be universal health care, which is controlled by the government and paid for by taxes)
In a command economy:
Far left, controlled economy
people are totally dependent on the government to make the decisions
consumers have very little to no influence on economic decisions.

13. MORE Government involvement = LESS Consumer Choice
LESS Government involvement = MORE Consumer Choice

14. Supply and Demand Interactive:
Copy and Paste the website below:
m4/ss09_m4_s1_l2_08_supply/ss09_m4_s1_l2_08_supply.html
2. With a partner, check your understanding of supply and demand by answering the two critical thinking challenge questions on the bottom of page 211 of your textbook. Record your answers in the googledoc you’ve already shared with Mrs. Jans.
3. Refer back to the slide show if you need help answering the questions.