FrontPage : NNIGN The Last Word: Chapter 7 SR – due Friday "It was just revealed that the Federal Reserve was hacked on Sunday. It's pretty serious. In fact, they say the hackers could've made off with as much as negative $14 trillion." –Jimmy Fallon "The Postal Service announced that it will stop delivering mail on Saturdays in an effort to save $2 billion a year. Postal workers were shocked: 'We were supposed to deliver mail on Saturdays?" –Jimmy Fallon "A new study says that working fewer hours can slow global warming. So you know what that means? President Obama's economic policy is also his climate change policy." –Jay Leno "Next year's Super Bowl is already in the news. It takes place in New Jersey. The NFL says it wants to prevent another blackout. This one involves keeping Chris Christie away from his microwave." –Conan O'Brien "A member of Congress is criticizing Steven Spielberg after he discovered parts of the movie 'Lincoln' are historically inaccurate — particularly the scene where Lincoln dies in the mouth of a great white shark." –Conan O'Brien "People are still trying to figure out why the power went out Sunday at the Super Bowl. Today they found out the reason. Turns out China
FrontPage : NNIGN. "It was just revealed that the Federal Reserve was hacked on Sunday. It's pretty serious. In fact, they say the hackers could've made off with as much as negative $14 trillion." –Jimmy Fallon - PowerPoint PPT Presentation
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FrontPage: NNIGN
The Last Word: Chapter 7 SR – due Friday
"It was just revealed that the Federal Reserve was hacked on Sunday. It's pretty serious. In fact, they say the hackers could've made off with as much as negative $14 trillion." –Jimmy Fallon
"The Postal Service announced that it will stop delivering mail on Saturdays in an effort to save $2 billion a year. Postal workers were shocked: 'We were supposed to deliver mail on Saturdays?" –Jimmy Fallon
"A new study says that working fewer hours can slow global warming. So you know what that means? President Obama's economic policy is also his climate change policy." –Jay Leno
"Next year's Super Bowl is already in the news. It takes place in New Jersey. The NFL says it wants to prevent another blackout. This one involves keeping Chris Christie away from his microwave." –Conan O'Brien
"A member of Congress is criticizing Steven Spielberg after he discovered parts of the movie 'Lincoln' are historically inaccurate — particularly the scene where Lincoln dies in the mouth of a great white shark." –Conan O'Brien
"People are still trying to figure out why the power went out Sunday at the Super Bowl. Today they found out the reason. Turns out China cut off the electricity for nonpayment of our bill." –Jay Leno
DEMAND AND SUPPLY
Chapter 7
Section 1 - Demand
The “Marketplace” Consumers influence the price of goods
in a market economy. Demand is how people decide what to
buy and at what price. Supply is how sellers decide how much
to sell and what to charge. A market represents actions between
buyers and sellers.
Voluntary Exchange The seller sets the price. The buyer agrees to the product and
price through the act of purchasing product.
Supply and demand analysis is a model of how buyers and sellers behave in the marketplace.
The Law of Demand Demand is created only when the customer is
both willing and able to buy product. As price goes up, quantity demanded goes down.
As price goes down, quantity demanded goes up. Real income effect is when people are limited by
their income as to what they can purchase. Substitution effect is when people can replace
one product with another if it satisfies the same need.
The Law of Demand Utility is the ability of any good or service to
satisfy consumer wants. People will purchase additional items until the
satisfaction from the last unit is equal to the price.
The lessening of this satisfaction with each additional purchase is called diminishing marginal unity.
Section 2 – The Demand Curve and Elasticity of Demand
Graphing the Demand Curve A demand schedule is a table of prices
and the quantity demanded at each price.It lists quantity demanded at different prices
A demand curve graphs the quantity demanded of a good or service at each possible price.
Quantity Demanded vs. Demand A change in quantity demanded is caused by a
change in the price of a good.
If something other than price causes demand to increase or decrease, this is known as a change in demand and shifts the demand curve.
Determinants of Demand Population Income Tastes and preferences, including fads Substitutes are when a new competitor
is added or an old competitor leaves the market.
Complementary goods are products that rely upon one another, demand for one affects demand for the other.
The Price Elasticity of Demand How much consumers respond to a given change
in price is elasticity. Elastic demand occurs when the demand for
some goods is greatly affected by the price. Inelastic demand occurs when the demand for
some goods is less affected by price. How many substitutes exist and how closely they
provide the same quality and service affects elasticity of demand (fewer or no substitutes make demand inelastic).
The Price Elasticity of Demand Percent of a personal budget spent on that item
affects elasticity of demand (the higher the percent of budget, the more elastic the demand).
How much time consumers have to adjust to the new price affects elasticity of demand (more time makes for greater elasticity).
FrontPage: NNIGN
The Last Word: Chapter 7 GR – due Friday
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