1. Chapter 31 MARKETING AND ECONOMICS 1Scarcity and Private Enterprise 2Observing the Law of Supply and Demand 3Types of Economic Competition 4Enhancing Economic Utility

2. Chapter 32 Focus Questions: Does the use of a Chinese language headline increase or decrease your interest in the advertisement? What is the key message Morgan Stanley is trying to communicate? Offer examples of how the growth of the economies in other countries around the world affects U.S. businesses and consumers. ©MORGAN STANLEY

3. Chapter 33 SCARCITY AND PRIVATE ENTERPRISE GOALS  Identify the basic economic problem.  Describe how America’s private enterprise economy works.

4. Chapter 34 The Importance of Economic Understanding  The basic economic problem  Who makes the decisions? Controlled economy—government Free economy—individuals Mixed economy—government and private enterprise

5. Chapter 35 America’s Private Enterprise Economy  Characteristics Consumers Producers Government  Economic forces

6. Chapter 36 OBSERVING THE LAW OF SUPPLY AND DEMAND GOALS  Explain microeconomics and the concept of consumer demand.  Identify factors that affect supply and its relationship to demand.

7. Chapter 37 Macroeconomics  Macroeconomics studies the economic behavior and relationships of an entire society.

8. Chapter 38 Microeconomics  Microeconomics is the study of relationships between individual customers and producers.

9. Chapter 39 Microeconomics and Consumer Demand  Factors affecting demand  Analyzing demand curves Demand curve Law of demand Economic market

10. Chapter 310 Price $10.50 9.00 7.50 6.00 4.50 3.00 1.50 1,000 Quantity 2,0003,0004,0005,0006,0007,000 Demand Curve for Movies

11. Chapter 311 Supplying the Product  Handling the competition  Analyzing supply curve Supply curve Law of supply

12. Chapter 312 Price $105 90 75 60 45 30 15 10,000 Quantity 20,00030,00040,00050,00060,00070,00080,000 Supply Curve for Cell Phones

13. Chapter 313 Intersecting Supply and Demand  Supply  Demand  Market price

14. Chapter 314 Demand Curve for Notebook Computers Price $2,100 1,800 1,500 1,200 900 600 300 100 Quantity (in 000s) 200300400500600700800

15. Chapter 315 Supply Curve for Notebook Computers Price $2,100 1,800 1,500 1,200 900 600 300 100 Quantity (in 000s) 200300400500600700800

16. Chapter 316 Price $2,100 1,800 1,500 1,200 900 600 300 100 Quantity (in 000s) 200300400500600700800 Market Price for Notebook Computers DemandSupply Market Price

17. Chapter 317 TYPES OF ECONOMIC COMPETITION GOALS  Define pure competition and monopoly.  Explain the characteristics of oligopolies and monopolistic competition.

18. Chapter 318 All-Out Competition or No Competition At All  Pure competition  Monopoly

19. Chapter 319 Price Quantity Demand Curve for One Company in Pure Competition

20. Chapter 320 Price Quantity Demand Curve for a Monopoly

21. Chapter 321 Between the Extremes  Oligopolies  Monopolistic competition  Understanding the competition

22. Chapter 322 Demand Curve for One Company in an Oligopoly Price Quantity

23. Chapter 323 Demand Curve for the Industry in an Oligopoly Price Quantity

24. Chapter 324 Price Quantity Demand Curve for Monopolistic Competition with Few Product Differences

25. Chapter 325 Demand Curve for Monopolistic Competition with Greater Product Differences Price Quantity

26. Chapter 326 ENHANCING ECONOMIC UTILITY GOALS  Define four types of economic utility.  Explain how marketers use utility to increase customer satisfaction.

27. Chapter 327 Utility Means Satisfaction Economic utility  Form utility  Time utility  Place utility  Possession utility