1. Economy and Marketing
Today we are going to be breaking down the main ideas of 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
There are four kinds of economy and each has their way of making decisions. In a controlled economy the government owns and controls important resources and decides what goods should be produced and in what amounts. In a regulated economy decisions are shared between the government and other groups or individuals. In a free economy, otherwise known as a market economy, resources are owned by the individuals and decision making rests solely on the individuals with no regulation. This would be the exact opposite of a controlled economy. A mixed economy is a mix of the other economies. Some goods and services are provided by the government and some by the 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)
In America’s Economy, a private enterprise is based upon independent decisions by businesses and consumers with limited or no government control. It is a business unit established, owned, and operated by private individuals for profit. In this type of system profit is the motive for business. Decisions to use resources toward the greatest satisfaction of wants and needs is called value, and consumers use that in deciding what to consume.

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
Here are some general vocabulary terms frequently used in an economy. Consumers are individuals who purchase the products and services while producers are businesses that use the resource they control to develop those products and services. Supply and demand go hand in hand. Supply is the quantity of a product while demand represents the consumers being willing and able to purchase the product for the price.

5. Micro and Macro
Macroeconomics: economic behavior for an entire society
Microeconomics: relationships between individual consumers and producers
Macroeconomics is the economic behavior for an entire society while microeconomics is the 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 needs/wants
There are many factors affecting demand. There is strength of want or need because the more consumers want or need a product the easier it will be to sell. Availability of supply that way you are able to make the products to sell. Availability of alternative products that consumers believe will satisfy their needs or wants is also an important factor affecting demand.

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
The demand curve is the relationship between the price and the quantity demanded. The Law of Demand states that as the price of a product is increased, the demand will decrease and vice versa. An economic market represents all the consumers that are willing to purchase a particular product or service.

8. The Demand Curve
To make a demand curve the price is displayed on the y-axis and demand is on the x-axis. The demand curve slopes downward towards the right of the chart meaning the higher the demand the lower the price.

9. Factors Affecting Supply
Possibility of profit
Amount of competition
Capability of developing and marketing the products and services
There are several factors that affect supply. Possibility of profit is important; the business must make sure profit is worth the initial cost. The amount of competition to see what is already out on the market. Lastly, the 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: if the price of a product is increased, more product will be produced and vice versa
The supply curve is a graph that shows the relationship between price and quantity. The law of supply states that when the price of a product increases, more will be produced and vice versa.

11. The Supply Curve
The quantity is displayed on the y axis and the price is on the x-axis. The graph slopes upward to the right of the chart meaning as the price rises so does the quantity.

12. Market Price
Market Price: the point where supply and demand for a product is equal
The demand and supply curve are related to one another. The market price is the point where supply and demand for a product is equal as in the quantity meets both the price and demand shown in the center of the X.