1. Economy and Marketing

2. Who Makes the Decisions?
Controlled Economy: the government owns and controls important resources
Regulated Economy: decisions are shared between the government and other groups or individuals
Free Economy: resources are owned by the individuals and decision making rests solely on the individuals, no regulation
Mixed Economy: some goods and services provided by the government and some by individuals

3. America’s Economy
Private Enterprise: based upon independent decisions by businesses and consumers with only a limited government role
Resources owned by individual producers
Profit is the motive for business
Consumers decide what will be purchased
Consumers use value in deciding what to consume (Value: decisions to use resources toward the greatest satisfaction of wants and needs)

4. Consumers and Producers
Consumers: individuals who purchase products and services
Producers: businesses that use the resources they control to develop products and services
Demand: relationship between the quantity of a product consumers are willing and able to purchase for the price
Supply: relationship between the quantity of a product that producers are willing and able to produce and the price

5. Micro and Macro
Macroeconomics: economic behavior for an entire society
Microeconomics: relationships between individual consumers and producers

6. Factors Affecting Demand
Strength of want or need
Availability of supply
Availability of alternative products that consumers believe will satisfy their need/want

7. The Demand Curve
Demand Curve: relationship between the price and the quantity demanded
The Law of Demand: as the price of a product is increased, the demand will decrease and vice versa
Economic Market: all the consumers who are willing to purchase a particular product or service

8. The Demand Curve

9. Factors Affecting Supply
Possibility of profit
Amount of competition
Capability of developing and marketing the products and services

10. The Supply Curve
Supply Curve: a graph that shows the relationship between price and quantity
Law of Supply: with the price of a product is increased, the more will be produced and vice versa

11. The Supply Curve

12. Market Price
Market Price: the point where supply and demand for a product is equal