1. Economics & Economic Decision Making
Notebook Question:
What is an auction and how does one work?

2. Microeconomics Choices:
Auction Time!!!
Throughout this period we will be auctioning off items. You have all started with the same amount of $$ so you all have an equal chance.

3. Auction
Intermixed with our notes today we will be auctioning. You will never know when it’s coming or when it will end. Spend wisely!!

4. AUCTION TIME!!

5. Microeconomics Microeconomics:
The part of economics that studies decision making by consumers and producers.

6. AUCTION TIME!!

7. Key Parts of Microeconomics:
Demand: consumers DESIRE, WILLINGNESS & ABILITY to buy g&s to satisfy wants and needs

8. AUCTION TIME!!

9. Big Consumer Decision
Would you spend some of your money on higher education?
2 Year Degree will cost you $10
4 Year Degree will cost you $20
Will you sacrifice money and time?

10. But the advantage of education means more money!!!
College Now means down time…but as we learned has the potential for more money later!!
But the advantage of education means more money!!!
2 Year = $30 more
4 Year = $50 more
Anyone who bought a college degree is may not participate in the next auction…
loss of time!

11. AUCTION TIME!!

12. Key Parts of Microeconomics:
2. Supply: producers ability & willingness to OFFER g&s in order to make a PROFIT

13. Key Parts of Microeconomics:
3. Price: the monetary value placed on g&s
How are prices established?
In a market economy, producer and consumers decide the prices!!!
Laissez-faire means government does not get involved here!!

14. AUCTION TIME!!

15. Market Power Consumer Power: When demand is high, price will…
When demand is low, price will…

16. Storage Wars Episode!!

17. Auction’s Final Thoughts
Let’s Recap!!!
Who set the prices here? How?
Does time affect price? Why?
Can consumers leave a market unsatisfied? Explain.