Supply- How much of a good will be supplied at a particular price. Demand- How much of a good will be demanded at a particular price. Equilibrium price- The price at which the producer is willing to sell their product and the price at which consumers will buy them. Substitute goods- Goods that can be used in place of one another. Ex: McDonald’s & Burger King, Margarine & Butter Complimentary goods- Goods that work together. Ex: DVD & DVD Player, Computer & Software, Baseball glove & Ball
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Supply- How much of a good will be supplied at a particular price. Demand- How much of a good will be demanded at a particular price. Equilibrium.
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Supply- How much of a good will be supplied at a particular price.
Demand- How much of a good will be demanded at a particular price.
Equilibrium price- The price at which the producer is willing to sell their product and the price at which consumers will buy them.
Substitute goods- Goods that can be used in place of one another. Ex: McDonald’s & Burger King, Margarine & Butter
Complimentary goods- Goods that work together. Ex: DVD & DVD Player, Computer & Software, Baseball glove & Ball
Personal income- All of the money received by a household.
Disposable income- Income that is left after paying taxes. This is spent on out needs. Ex: Mortgage
Discretionary income- Income that is leftover after meeting our needs. This may be spent on our wants. Ex: ipods
Shortage- When demand for a good exceeds supply. Surplus- When the supply of a good exceeds demand. Inflation- A general rise in prices. Interest rate- The amount of money paid to a lender in
exchange for the use of the lenders money. Ex: Mortgage, credit cards
What three elements depend on one another for economic interdependance?
What role do households play in the economy?
What role do firms play in the economy? What role does the government play in
the economy? What type of economic system does the
Island of Mocha have?
EQ: HOW DO CONSUMERS AND MARKETS REACT TO SHORTAGES AND SURPLUSES?
In the circular flow of the economy in which market do people sell their labor?
1. What are the 3 major economic actors in the U.S. economy?
Cut corporate taxes so that businesses can have more money to spend on production and labor.
“Trickle down effect”
EQ: HOW DO CONSUMERS AND MARKETS REACT TO SHORTAGES AND SURPLUSES?
SUMMARIZE THE LAW OF SUPPLY AND DEMAND AND CREATE A DEMAND AND SUPPLY SCHEDULE
EXPLAIN WHAT IS THE EQUILIBRIUM PRICE? IDENTIFY SOME OF THE INFLUENCES ON SUPPLY AND
DEMAND? INTERPRET THE IMPACT OF COMPETITION ON SUPPLY AND
DEMAND? COMPARE AND CONTRAST SUBSTITUTE GOODS AND
COMPLIMENTARY GOODS IDENTIFY FACTORS THAT AFFECT PRICES? EXPLAIN THE DIFFERENCE BETWEEN INFLATION AND
DEFLATION? EVALUATE HOW INTEREST RATES CAN IMPACT PRICES
AND AFFECT SPENDING? IDENTIFY WAYS THE GOVERNMENT IMPACT PRICES?
What is the Equilibrium Price? The Equilibrium Price is the price
producers sell their product and the price consumers pay for the product.
Using pictures from the magazines and what you just learned create a collage of complimentary and substitute goods. Divide your poster board in half to separate each type
of good. Answer the following question on your collage:
What will happen to demand if the price rises for a substitute/complimentary good?