2.  I can DEFINE supply and demand and understand how, together, they determine MARKET PRICES

3.  2 functions in a ◦ (Demand) ◦ (Supply)  Demand – Define  Supply – Define  Market Economy – Voluntary Exchange ◦ Seller’s problem of ◦ Buyer’s problem of  Demand/Supply SHOWS Cause/Effect with relation to

4.  I can DEFINE supply and demand and understand how, together, they determine MARKET PRICES

5.  I can describe the LAW OF DEMAND and what FACTORS affect Demand

6.  PRICE GOES DEMAND GOES  Demand –  Inverse Relationship  Other Factors that affect Quantity Demanded: ◦ Real Income Effect ◦ Substitute Effect ◦ Law of Diminishing Marginal Utility

7.  Cannot buy ◦ Known as real income effect on demand  Forces Trade-offs  Real Income =  Works in Opposite also

8.  2 items nearly the same – Price of one goes up people will buy other

9.  Define – Utility  People decide to buy goods based on Utility  Law of Diminishing Marginal Utility

10.  I can describe the LAW OF DEMAND and what FACTORS affect Demand

11.  I can CREATE and INTERPRET a Demand Curve

12.  Demand Schedule –  Demand Curve –

13.  I can CREATE and INTERPRET a Demand Curve

14.  I can identify Factors that cause a Change in Demand

15.  Changes in  Substitutes  Complementary Goods

16.  I can identify Factors that cause a Change in Demand

17.  I can explain elasticity of demand and the difference between elastic demand and inelastic demand products

18.  Elasticity – Define  Elastic Demand –  Examples of Products  Inelastic Demand –  Examples of Products

19.  Substitutes  How much you budget for the good ◦ Smaller percentage budgeted = ◦ Larger percentage budgeted =  Amount of to prepare for change

20.  I can explain elasticity of demand and the difference between elastic demand and inelastic demand products

21.  I understand the Law of Supply  I can Graph and Interpret a Supply Curve

22.  Law of Supply – DIRECT RELATIONSHIP  Profit Incentive at Work  Cancer Video Cancer Video

23.  Supply Schedule – Table showing quantities supplied at different possible prices.  Supply Curve – Upward sloping line that shows the quantities supplied at each price.

24.  I understand the Law of Supply  I can Graph and Interpret a Supply Curve

25.  I can identify factors that cause the Supply Curve to shift right (increasing) or shift left (decreasing)

26.  Price ◦ Raw materials, LABOR, Energy, Rent/Lease/Mortgage  Technology

27.  I can identify factors that cause the Supply Curve to shift right (increasing) or shift left (decreasing)

28.  I understand the interaction of Supply and Demand in a market economy.

29. ◦ To Consumers AND Producers

30. ◦ Can lead to Rationing or Black Market ◦ Minimum Wage!!

31.  I understand the interaction of Supply and Demand in a market economy.