To learn more about the effect of supply and demand on …djohnson2pchs.weebly.com/uploads/8/7/3/8/87386724/...Checking for Understanding 1. Key TermsWrite a paragraph related to supply

What roles do you play in the marketplace? You are abuyer, and you express your demand when you purchasea product. Do you have a part-time job? Do you dohousehold chores for an allowance? By taking part inthese activities, you are also a supplier.You are supplyingan economic product—your labor—to buyers in themarketplace. Find three articles from newspapers thatillustrate the concept of supply.

To learn more about the effect of supply and demand onprices, view the Economics & You video lesson 12: ThePrice System at Work.

Organizing Information Study Foldable Make the following foldable to helpyou organize information about supply in a market economy.

Step 1 Fold a sheet of paper intothirds from top to bottom.

Reading andWriting As you readthe chapter, recordyour thoughts and theinformation you learnabout supply in amarket economy inthe appropriatecolumns of yourfoldable.

460New technology in the auto industry

helps workers produce more cars. ▲

What Is Supply?

FactorsAffecting

Supply

Descriptionof Factors

Step 2 Turn the paper horizontally,unfold, and label the three columnsas shown.

460-465 U6 CH21 S1 CT-860970 12/8/03 7:04 PM Page 460

Vladimir Pcholkin/Getty Images

Step 2 Turn the paper horizontally,unfold, and label the three columnsas shown.

Chapter Overview Visit the CivicsToday Web site at civ.glencoe.comand click on Chapter Overviews—Chapter 21 to preview chapterinformation.

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http://civ.glencoe.com

GUIDE TO READING

Main IdeaFor almost any good orservice, the higher theprice, the larger the quan-tity that will be offered forsale.

Key Termssupply, law of supply,supply schedule, supplycurve, profit, market supply

Reading StrategyOrganizing InformationDraw the diagrams shownbelow. As you read thissection, complete the dia-grams by adding arrowsto indicate increase ordecrease to the QuantitySupplied bar.

Read to Learn• What does the law of

supply state?• What is the difference

between a supply sched-ule and a supply curve?

What Is Supply? SECTION

The supply of goods, likemeat, affects prices.

Pric

esPr

ices

Qua

ntity

Sup

plie

d

WhenPricesRise

WhenPricesFall

Qua

ntity

Sup

plie

d

A.

B.

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462 Chapter 21 SupplySusan Lapides/Woodfin Camp & Assoc.

Just as a coin has two sides, so does a market. A coinhas heads and tails; a market has a buying side and a selling side.The buying side is relevant to what is called demand, and the sellingside is relevant to what is called supply. A Philadelphia Inquirer storydiscussed how supply affected price in the spring of 2001: “Retailbeef prices are soaring—reaching a record $3.21 a pound for USDA-choice cuts . . . because of a harshPlains winter that has been tough oncattle. Prices are likely to dip by thesummer, but then rebound because oftight cattle supplies. Producers are onlystarting to rebuild herds that they hadthinned because of drought and lowprices in the late 1990s. The winter hasbeen so cold and damp that cattle aretaking several months longer thanusual to fatten.”

An Introduction to Supply In the previous chapter, you read about one of the major

forces that contributes to setting prices in our economy. Thatforce was consumers’ demand for goods and services. There isanother major force at work, called supply. As you can see fromthe Americans in Action feature above, a low supply of beef ledto high prices in early 2001.

Exploring Supply and DemandWhat is supply? Supply refers to the various quantities of

a good or service that producers are willing to sell at all possi-ble market prices. Supply normally refers to the output of asingle business or producer. However, as in the case ofdemand, it is also possible to add the supply of all producerstogether to get the supply for the entire market.

Supply is the opposite of demand. Buyers demand differentquantities of a good depending on the price that sellers ask.Suppliers offer different quantities of a product depending onthe price that buyers are willing to pay.

Chapter 21 Supply 463

The Law of SupplyRemember that the law of demand

states that the quantity demanded variesaccording to price. As the price rises for agood, the quantity demanded goes down.As the price of a good goes down, the quan-tity demanded rises.

The quantity supplied also variesaccording to price—but in the oppositedirection. As the price rises for a good, thequantity supplied rises. As the price falls,the quantity supplied also falls. This is thelaw of supply, the principle that supplierswill normally offer more for sale at higherprices and less at lower prices. The higherthe price of a good, the greater the incentiveis for a producer to produce more.The pro-ducer will expect to make a higher profitbecause of the higher price. The profitincentive is one of the factors that moti-vates producers in a market economy.

We can represent the law of supply withnumbers, just as we did with the law ofdemand. The table at the bottom of thispage shows such a relationship. As the price

goes up from $5 to $10 to $20 and to $50,the quantity supplied goes up from 1 to 10to 30 and to 100. A numerical chart, likethis one, that illustrates the law of supply iscalled a supply schedule.

The Individual Supply CurveWe can also illustrate the law of supply

with a graph. A supply curve is a graphthat shows the amount of a product thatwould be supplied at all possible prices inthe market. Like the demand curve, the sup-ply curve graph is drawn with prices on thevertical axis and quantities on the horizon-tal axis. In the supply curve on this page, thequantities are the amounts of the good orservice that the business will supply. Thesupply curve tells us that the company iswilling to sell 100 video games at a price of$50, 90 at $40, 70 at $30, and so on.

Unlike the demand curve, the supplycurve slopes upward. This reflects the factthat suppliers are generally willing to offermore goods and services at a higher priceand fewer at a lower price.

Software House Supply

Price Quantity

$50$40$30$20$10$5

100907030101

Software House’s Supply Schedule

SOFTWARE HOUSE’S SUPPLY CURVE

PR

ICE

0

$10

$20

$30

$40

$50

20 40 60 80 100QUANTITY

A supply schedule and supply curve show the quan-tities supplied at each possible price. How manyvideo games would Software House be willing tosell at a price of $10 per game?

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464 Chapter 21 Supply

The Profit MotiveBusinesses invest time, money, and

other capital resources in order to makemoney. The desire to cover costs and toearn profits explains why businesses wish tosell their goods and services at higherprices. Businesses try to set prices at a levelthat allows them to cover their costs. If theydo not, they will lose money.

In our economy, businesses providegoods and services hoping to make aprofit. Profit is the money a businessreceives for its products or services overand above its costs. If it costs SoftwareHouse $40 to make a video game and itsells the game for $40, the company gainsnothing from the sale. Like most people,though, the company wants to make somemoney. That requires selling the game formore than $40. The additional money isthe owner’s profit.

Producers can choose to use their prof-its in many different ways. They canincrease wages they pay their workers.They can invest the money back into the

business to acquire more space, buy newequipment, or hire new workers. They canalso keep the money for themselves.Whatever profits are used for, earningthem is a primary goal for business ownersin our economy.

Defining What is supply?

Graphing Market SupplyRecall that when you studied demand in

Chapter 20, you looked at the total of all con-sumers’ demand. This concept is called themarket demand.You will do the same thingwhen you study supply. If you combine thesupply schedules of all the businesses thatprovide the same good or service, the total iscalled the market supply.

An Upward SlopeThe figure on this page shows the market

supply for video games in one community.Notice that the market supply for all pro-ducers is larger than the supply for Software

Market Supply

Price Total QuantitySupplied

$50$40$30$20$10$5

2752251801055530

Supply ScheduleSUPPLY CURVE

PR

ICE

0

$10

$20

$30

$40

$50

QUANTITY50 100 150 200 250 300

The market supply curve shows the quantitiesoffered at various prices by all firms in a givenmarket. What is the relationship between theprice of a good and the quantity supplied?

460-465 U6 CH21 S1 CT-860970 12/8/03 7:12 PM Page 464

Checking for Understanding1. Key Terms Write a paragraph

related to supply using thesekey terms: supply, law of supply,supply schedule, supply curve,profit, market supply.

Reviewing Main Ideas2. Explain What does the law of

supply state?3. Compare Describe the differ-

ence between the supply curveand the supply schedule. Whatdo the supply curve and the supply schedule show?

Critical Thinking4. Cause and Effect How does the

incentive of greater profits affectthe quantity supplied?

5. Organizing Information Create agraph by plotting the informationshown on the supply schedulebelow.

Analyzing Visuals6. Interpret Study the individual

supply schedule and curve onpage 463. How many videogames will be supplied at aprice of $30?

SECTION ASSESSMENT

House alone. (Compare the graphs on pages463 and 464.) Still, the market supply curvehas the same shape as in the individual sup-ply curve.The upward slope shows that all ofthe producers in the market would prefer tosell more video games at higher prices andfewer games at lower prices.

The Influence of PriceWhen constructing a supply curve, keep

in mind that the price is the most signifi-cant influence on the quantity supplied ofany product. For example, you are offeringyour services for sale when you look for ajob. Your economic product is your labor,and you would probably be willing to sup-ply more labor for a high wage, or price,than you would for a low one.

Other FactorsHowever, other factors can and do

affect supply. The supply curve is drawnassuming that these and other things arefixed and do not change. If any of these fac-tors does change, a change in supply willoccur—the entire supply curve will shift.You will read more about change in supplyin the next section.

Explaining How is marketsupply determined?

�BE AN ACTIVE CITIZEN�7. Research Clip articles from

newspapers or magazines thatshow the law of supply in operation. Discuss your clippingsin class.

Chapter 21 Supply 465Courtesy Sidney Harris

Price Quantity(dollars) Supplied (units)

$1 102 203 304 40

Analyzing Visuals Business owners alwaysneed to be aware of the relationship betweensupply and demand. Why is the store holdinga sale?

Study Central TM To review this section, go toand click on Study CentralTM.civ.glencoe.com

460-465 U6 CH21 S1 CT-874574 9/29/05 2:53 PM Page 465

civ.glencoe.com

As you’ve learned,consumers demand products andservices at the lowest possibleprices. In contrast, suppliers, likeWal-Mart, exist to make a profit. U.S. News & World Reportdiscussed the actions othersuppliers had to take to competewith Wal-Mart: “Retailers alsohave to keep prices low tocompete against Wal-Mart, theworld’s biggest merchant. ‘Theymake the supply chain soefficient that it cuts costs,’ says[economist Frank Badillo]. Lastweek, for example, Wal-Mart said it wouldn’t use a particular Visadebit-card system because transaction fees had been increased. Wal-Mart passes on such savings to consumers, who then expect thesame from the competition. So the likes of Target, Kmart, Sears, Kohl’s,and department stores duke it out to woo consumers.”

Changes in SupplyRemember that demand does not stay the same over time.

When consumers’ situations change—or as the economychanges—demand increases or decreases. It probably is notsurprising to hear that the same is true with supply. Supply canincrease or decrease, depending on many different factors.

In order for a change in supply to take place, producers mustdecide to offer a different quantity of output at each possibleprice in the market. This might happen for a number of rea-sons—changes in the cost of production, in government policies,in the number of producers, or in the expectations of businesses.

When supply goes down, the supply curve moves to theleft. When supply goes up, the supply curve is pushed to theright. In this case, suppliers are willing to sell a larger quantityof goods and services at lower prices.You can see these changesin the figure on page 468. Now let us look at what can causesupply to change.

GUIDE TO READING

Main IdeaSeveral factors can causesupply to either increaseor decrease.

Key Termsproductivity, technology,subsidy, supply elasticity

Reading StrategyOrganizing InformationAs you read the section,complete a diagram likethe one below by identify-ing six factors that canlead to a change in mar-ket supply.

Read to Learn• What are the factors

that can change supply?

• What is supply elasticity?

Factors AffectingSupply

SECTION

Factors AffectingSupply

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Suppliers compete with oneanother for customers.

466 Chapter 21 SupplyAP/Wide World Photos

Technology New computer technology has greatly increased productivity.What effect does improved technology usually have on supply?


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Changes in the Cost of Resources Earlier, you learned how four resources,

or factors of production, are used to pro-duce goods and services. When theseresource prices fall, sellers are willing andable to produce and offer to sell more of thegood. The supply curve shifts to the right.The reason for this is that it is cheaper toproduce the good.

When resource prices rise, sellers areless able to produce and sell the samequantities of the good. The supply curveshifts to the left, because it is more expen-sive to produce the good.

Productivity One way businesses can cut costs—and

increase profits—is by improving produc-tivity. Productivity is the degree to whichresources are being used efficiently to pro-duce goods and services. Most of the newsyou will hear about productivity concernslabor. When workers are more efficient—when they produce more output in thesame amount of time—a company’s costsgo down. The result is that more products

are produced at every price, which shiftsthe supply curve to the right.When produc-tivity falls, it costs more for a company toproduce the same amount of goods and serv-ices. In this case, the supply curve will shift tothe left.

Technology Costs are also affected by technology.

Technology refers to the methods orprocesses used to make goods and services.New technology can speed up ways ofdoing things. At many stores, cashiers usescanners to register the prices of goods thatcustomers are buying. These scanners domore than speed up checkout. They alsoautomatically track the number of unitsthat the store has sold and how many areleft on the shelf. As a result, store managersquickly know when they need to reorder aproduct. This is faster than having workerscount all the goods on the store’s shelves.

Technology often can cut a business’scosts. This pushes the supply curve to theright, showing that the business is willing tosupply more at the same price.

Fabian Falcon/Stock Boston

A Change in Supply

DECREASE IN SUPPLY

PR

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0

$10

$20

$30

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QUANTITY50 100 150 200 250 300

OriginalCurve

Drop inSupply

NewCurve

INCREASE IN SUPPLY

PR

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QUANTITY50 100 150 200 250 300

OriginalCurve

Increase inSupply

New Curve

Changes in Government PoliciesActions by the government can affect

supply as well. Suppose that the govern-ment passes a law requiring that fast-foodrestaurants pay all workers $10 an hour.The restaurants—faced with higher laborcosts—might then decide to lay off someworkers. The fewer workers who remainwould produce fewer hamburgers, resultingin a decrease in supply.

When the government establishes newregulations, the cost of production can beaffected, causing a change in supply. Forexample, when the government orders newsafety features for automobiles, such as airbags or emissions controls, autos cost moreto produce. Auto manufacturers adjust to thehigher production costs by producing fewercars at each and every price in the market.

In general, increased—or tighter—gov-ernment regulations restrict supply, causingthe supply curve to shift to the left. Relaxedregulations allow producers to lower thecost of production, which results in a shiftof the supply curve to the right.

Changes in Taxes and SubsidiesTax laws also affect businesses.To busi-

nesses, taxes are a cost. Higher taxes meanhigher costs, pushing the supply curve to the left. Lower taxes—lower costs—movethe supply curve to the right.This increasesthe amount of a good or service supplied ateach and every price.

A subsidy is a government payment toan individual, business, or other group forcertain actions. Suppose the governmentsubsidizes the production of corn by pay-ing farmers $2 for every bushel of corn.The subsidy lowers the cost of productionand encourages current producers toremain in the market and new producersto enter. When subsidies are repealed,costs go up, producers leave the market,and the supply curve shifts to the left.

Finally, the expectations of producersaffect supply as well. If businesses believethat consumer demand will not be veryhigh in the near future, they will produceless of their products. This cuts down onthe supply. On the other hand, if they


A change in supply means that a different quantity is supplied atevery price. What does a shift of the supply curve to the right show?

466-470 U6 CH21 S2 CT-860970 12/8/03 8:54 PM Page 468

Checking for Understanding1. Key Terms Write a paragraph

about supply in which you useall of the following terms: productivity, technology, subsidy,supply elasticity.

Reviewing Main Ideas2. Explain In which direction does

the supply curve shift when supply decreases? In whichdirection does the supply curveshift when supply increases?

3. Explain What determineswhether a business’s supplycurve is elastic or inelastic? Issupply elastic or inelastic in a sit-uation in which the price of booksrises 10 percent and the quantitysupplied rises 15 percent?

Critical Thinking4. Making Generalizations Why

does new technology shift thesupply curve to the right?

5. Understanding Cause and EffectComplete a table like the onebelow to explain how supplywould be affected—would itincrease or decrease in thesesituations?

Analyzing Visuals6. Identify Describe what the two

graphs on page 468 are show-ing. Which of the graphs moreaccurately illustrates a situationin which the number of firms inan industry increases?

SECTION ASSESSMENT

expect demand to go up, they will pro-duce more at all possible prices. This isthe reason that stores stock up on swim-suits as summer nears. They expect thatconsumers will want to buy more of thesegarments at that time of the year.

A change in the number of the supplierscauses a change in market supply. As morefirms enter an industry, the supply curveshifts to the right. In other words, the largerthe number of suppliers, the greater themarket supply. If some suppliers leave themarket, supply decreases, shifting the curveto the left.

Elasticity of SupplyLike demand, supply can be elastic or

inelastic. Supply elasticity is a measure ofhow the quantity supplied of a good orservice changes in response to changes inprice. If the quantity changes a great dealwhen prices go up or down, the product is

said to be supply elastic. If the quantitychanges very little, the supply is inelastic.

Supply elasticity depends on howquickly a company can change the amountof a product it makes in response to pricechanges. Oil is supply inelastic. When oilprices go up, oil companies cannot quicklyfind a new site with oil, dig a new well,build a pipeline to move the oil, and build arefinery to turn it into gasoline.The same istrue of other products that require produc-ers to invest large sums of money in orderto produce them.

The supply curve is likely to be elastic,however, for kites, candy, and other prod-ucts that can be made quickly withouthuge amounts of capital and skilled labor.If consumers are willing to pay twice theprice for any of these products, most pro-ducers will be able to gear up quickly toincrease production.

Explaining What is supplyelasticity?

�BE AN ACTIVE CITIZEN�7. Analyze Contact the foreign lan-

guage teachers in your school tosee if they have any advertisingmaterial from other countries.Even without translating the lan-guage, can you understand thepurpose of the advertisement?Write several paragraphs describ-ing how marketing in other coun-tries differs from our ads.


Cause Effect on Supply

The cost of a product’s basicraw materialsgoes down.

Governmentoffers taxincentives toyour company.


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civ.glencoe.com

Technology

Why Learn This Skill?Libraries contain an overwhelming amount ofinformation. Going to the library to find informa-tion or to check out a certain book usuallymeans using the card catalog to help you nar-row your search. The card catalog lists all thebook titles, periodicals, recordings, and otherpublications the library offers. Modern librariesstore their card catalogs in computer databases.

Learning the SkillUsing a computerized card catalog makes iteasy to find any information you need for aterm paper or a research project. The follow-ing guidelines will help you get started in yoursearch for information.• Type in a subject heading, or the name of

an author, or the title of a book, videotape,audiocassette, or CD.

• The computer will list on screen the subject,author, or title you requested.

• The “card” that appears on screen also listsother important information. Use this infor-mation to determine if the material meetsyour needs.

• Check to see if the material is available.Find the classification and call numberunder which it is shelved.

• Ask a librarian for help if needed.

Practicing the SkillStudy the computerized card catalog screens tothe left. Then answer the following questions.

Your research topic is “supply anddemand.” Which options might you selectfrom the Main Search Menu?You narrow your search to a book titledEconomics Now. How do you know thistitle will be of help to you?Why might you use the “Author” searchoption on the Main Search Menu?

3

2

1


[book on call screen not an actual publication]

Main Search MenuFile Commands Screen

Your Search

Start Over Back Sort List Help Other Locations

Menu Back Search Exit Help

File

Call: NONFICTION Status: IN 330WES

Commands Screen

1. Author2. Exact Title3. Title Keyword4. Subject Heading List5. Subject Keyword6. Series7. Series Keyword8. Periodical Title9. Best Sellers

Author: Wesley, William D.Title: Economics NowPublisher: New York: Fine Learning Books, © 2003Description: 224 p.: illustratedNotes: Basic economic laws and applications for studentsBibliography: Includes bibliographic references, glossary, and indexSubjects: Resources, scarcity, land, labor, capital, supply, demand, production

Click on an item for more details

Limit Search

Start Over Back Sort List Help Other Locations

Menu Back Search Exit Help

Limit Search

more

Using a Computerized Card Catalog

Select a topic from this chapter. Search yourtopic on a computerized card catalog. Jotdown two titles and explain why you thinkthey would be useful.

Applying the Skill

466-470 U6 CH21 S2 CT-860970 12/8/03 8:56 PM Page 470

GUIDE TO READING

Main IdeaSupply and demand worktogether to determinemarket price.

Key Termssurplus, shortage, equilibrium price

Reading StrategyUnderstanding Causeand Effect As you readthe section, complete adiagram like the onebelow by describing threeadvantages of usingprices to distribute goodsand services.

Read to Learn• How do demand and

supply work together todetermine price?

• How do shortages andsurpluses affect price?

Markets andPrices

SECTION

In markets, supply and demand worktogether to determine prices. In the oilindustry, supply is influenced by theOrganization of Petroleum ExportingCountries [OPEC], an 11-nation groupof oil producing countries. Forexample, when gasoline prices werelow in the 1970s, OPEC restrictedthe supply of oil to force prices up.By 2005, however, gasoline pricesgot so high that OPEC tried to bringthem down by increasing the worldsupply of oil. A Reuters article thatyear reported that: “New productioncapacity from OPEC producers will helpoil stocks build in coming months and beenough to cope with an expected late-yeardemand surge . . . OPEC capacity will growby 1.6 million barrels per day to 32.7million this year as big new facilities start. . . . Higher OPEC supply, and rising inventory in the United States, hashelped pull world oil prices from record highs above $58 a barrel. U.S.crude closed down 64 cents at $50.49 a barrel yesterday.” Of course,OPEC can always change its mind - in which case prices could rise againinstead of fall.

Supply and Demand at Work In 2005 the oil producers who made up OPEC felt that

demand was too high and supply too low. As a result, their oilwas selling for more than they wanted.Their action of increas-ing supply shows how supply and demand work together in themarket to set price.

As you learned earlier, a market is any place or mechanismwhere buyers and sellers of a good or service can get togetherto exchange that good or service. For example, people whowant to buy corn might go to a farmers’ market or a super-market. Someone who wants to buy stock might use a com-puter to purchase it from a stock market. In each case, marketsbring buyers and sellers together.

Oil suppliers

Chapter 21 Supply 471Sam C. Pierson, Jr./Photo Researchers

Price System Advantages

471-477 U6 CH21 S3 CT-874574 9/29/05 3:20 PM Page 471


The forces of supply and demand, as wesaw in the feature, work together in marketsto establish prices. In our economy, pricesform the basis for economic decisions.

The Price Adjustment ProcessMarkets consist of all buyers and sellers

of a product. To see how supply anddemand work together, we need to com-bine the supply and demand curves. Lookat the graph on this page. It shows the mar-ket demand curve for video games fromChapter 20 and the market supply curvefor those games (from page 464).

SurplusSuppose we start by watching how buy-

ers and sellers react to a price of $40 in thismarket for video games. The graph showsthat sellers will supply 225 video games tothe market at this price. Buyers, however, arewilling to buy only 150 games at $40 each.This leaves a surplus of 75 video games.

A surplus is the amount by which thequantity supplied is higher than the quan-tity demanded. The surplus also appears asthe horizontal distance between the supply

and demand curves at any point abovewhere the demand and supply curves inter-sect. A surplus signals that the price is toohigh. Consumers are unwilling to pay theprice in large enough numbers to satisfyproducers. If the market is competitive, thissurplus will not exist for long. Sellers willhave to lower their price if they want to selltheir goods.

ShortageWhat if the price had been $20? Look at

the graph again. At this price, suppliers offeronly 105 video games for sale. Consumers,though, are willing to buy 230 games. Thisdifference is a shortage. A shortage is theamount by which the quantity demanded ishigher than the quantity supplied. Theshortage is shown as the horizontal distancebetween the two curves at any price belowthe point where demand and supply cross.

A shortage signals that the price is toolow. In this situation, suppliers are unwillingto sell their goods or services in largeenough numbers to meet all the demand. Ifthe market is competitive, the shortage willnot last.The price will have to rise.

The Price Adjustment Process

PR

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QUANTITY100 200 300 400

EquilibriumPrice

DemandCurve

SupplyCurve

Surplus

Shortage

PRICE ADJUSTMENT FOR VIDEO GAMES

A supply curve can be combined with ademand curve to analyze the price adjust-ment process. At what price does quantitydemanded equal quantity supplied?

Price Total QuantityDemanded

Total QuantitySupplied

$50$40$30$20$10$5

100150180230300400

2752251801055530

471-477 U6 CH21 S3 CT-860970 12/8/03 9:07 PM Page 472

Market Forces One of the benefits of the market econ-

omy is that it eliminates shortages and sur-pluses when it operates without restriction.Over time, a surplus forces the price downand a shortage forces the price up. Thisgoes on until supply and demand are bal-anced. The point where they achieve bal-ance is the equilibrium price. At thisprice, there is neither a surplus nor a short-age. In the figure on page 472, the equilib-rium price for video games is $30.

Once the market price reaches equi-librium, it will tend to stay there untileither supply or demand changes. Oncethat happens, the market will have a tem-porary surplus or shortage. If there is asurplus, the price will be driven down. Ifthere is a temporary shortage, the pricewill be driven up. The price will move inthis way until the market establishes anew equilibrium price.

Price ControlsOccasionally the government sets the

price of a product because it believes thatthe forces of supply and demand are unfair.When this happens, the new price mayfavor either consumers or producers.

A price ceiling is a government-set max-imum price that can be charged for goodsand services. For example, city officialsmight set a price ceiling on what landlordsmay charge for rent. A price floor is a gov-ernment minimum price that can becharged for goods and services. Pricefloors—more common than price ceil-ings—prevent prices from dropping toolow. The minimum wage, the lowest legalwage that can be paid to most workers, is aprice floor.

Explaining If the price of aproduct is above its equilibrium price, what isthe result?

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“We got 36 turkeys the first year,”Nally told TIME. “From there it just took off.We knew that we’d get a lot of support, butwe never imagined we’d get this much.”

The Boston-area youth took action atage 8, after learning that thousands in hisstate wouldn’t get to gobble turkey atThanksgiving. “Our family was watching thenews one night and saw that the food bankwas short,” says Nally. “Think about whatthese people must go through. Thanksgivingis a time when we’re supposed to bethankful, and some people have nothing on their plate. That was enough to inspireme to do this.” Their efforts gained nationalattention as well.

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Interested inlearning moreabout Turkeys 4America? Click ontheir Web site:www.turkeys4America.org

Dan Nally and his sister


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http://www.turkeys4america.org

Jeffrey Bezos (1964– )In 1994 Jeff Bezos left a securejob to jump into e-commerce—the buying and selling ofgoods over the Internet. Withuse of the Internet growing at2,300 percent in a one-yearperiod, he asked, “OK, whatkind of business opportunitymight there be here?”

Bezos decided to open theworld’s biggest online book-store—Amazon.com. Since1995, he has added other

products—CDs, videos, pots and pans, auc-tions, and more. As the 2000s opened,Amazon.com had become one of the leadinge-tailers—online retailers or merchants.

People who know Bezos are not surprisedby his success. Born in Albuquerque, NewMexico, Bezos learned to work hard on hisgrandfather’s Texas cattle ranch. After movingto Florida, he graduated as valedictorian froma Miami high school. He then went on toPrinceton University, where he majored incomputer science.

Does Bezos think e-commerce will pros-per? Yes, he says. Just like the IndustrialRevolution reshaped the nineteenth century,he believes Internet commerce will reshapethe century in which we now live.

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Prices as SignalsThe different parts of the economy

need a system of signals so they can worksmoothly together. In our economy, pricesare signals. They help businesses and con-sumers make decisions. Prices also helpanswer the basic economic questions—WHAT to produce, HOW to produce, andFOR WHOM to produce.

For example, consumers’ purchases helpproducers decide WHAT to produce. Theyfocus on providing the goods and servicesthat consumers are willing to buy at pricesthat allow the suppliers to earn profits. Acompany will make video games as long asconsumers are willing to buy them at a pricethat generates profits. If consumers aren’twilling to pay that price, the company won’tbe willing to make video games.

Prices also help businesses and con-sumers decide the question of HOW to pro-duce. Suppose it costs a hair salon $20 inlabor and supplies to provide a haircut.Consumers, though, are willing to pay only$15 for the haircut. To stay in business, thesalon needs to find less costly ways of pro-viding that haircut.That way, it can afford tomeet the price consumers are willing to pay.

Finally, prices help businesses and con-sumers decide the question of FORWHOM to produce. Some businesses aimtheir goods or services at the small numberof consumers who are willing to pay higherprices. Other businesses aim their goods orservices at the larger number of people whowant to spend less.

Advantages of PricesYou know that consumers look for the

best values for what they spend, while pro-ducers seek the best price and profit for whatthey have to sell.The information that pricesprovide allows people to work together toproduce more of the things that people want.

Without prices, the economy would notrun as smoothly, and decisions about allo-cating goods and services would have to bemade some other way. Prices do a good jobanswering the questions of WHAT, HOW,and FOR WHOM to produce.

Prices Are Neutral First, prices in acompetitive market economy are neutralbecause they favor neither the producer nor

AP/Wide World Photos

http://www.amazon.comhttp://www.amazon.com

Checking for Understanding1. Key Terms Write short para-

graphs about price using theseterms: surplus, shortage,equilibrium price.

Reviewing Main Ideas2. Explain What is the point called

at which the quantity demandedof a product and the quantitysupplied meet?

3. Explain What causes prices torise—a shortage or a surplus ofa good or service?

Critical Thinking4. Drawing Conclusions If a firm

charges a price below the equilib-rium price, will the price go up ordown? Explain.

5. Understanding Cause and EffectCreate a diagram like the onebelow to show how shortagesand surpluses affect prices ofgoods and services.

Analyzing Visuals6. Infer Study the graph of the price

adjustment process on page472. Does a price of $40 resultin a surplus or a shortage? Whatis the equilibrium price?

SECTION ASSESSMENT

the consumer. Prices are the result of com-petition between buyers and sellers. In thisway, prices represent compromises withwhich both sides can live. The more com-petitive the market is, the more efficient theprice adjustment process.

Prices Are Flexible Second, prices in amarket economy are flexible. Unforeseenevents such as war and natural disastersaffect the supply and demand for items.Buyers and sellers react to the new level ofprices and adjust their consumption andproduction accordingly. Before long, thesystem functions as smoothly as it hadbefore. The ability of the price system toabsorb unexpected “shocks” is one of thestrengths of a market economy.

Prices and Freedom of Choice Third,the price system provides for freedom ofchoice. Because a market economy typicallyprovides a variety of products at a wide rangeof prices, consumers have many choices. Ifthe price is too high, a lower-priced productcan usually be found. Even if a suitable alter-native cannot be found, no one forces theconsumer to pay a certain price for a productin a competitive market economy.

In commandeconomies, suchas those found inCuba and NorthKorea, consum-ers face limitedchoices. Govern-ment planners de-termine the totalquantity of goods produced—the numberof radios, cars, toasters, and so on.The gov-ernment then limits the product’s variety tokeep production costs down. Items such asfood, transportation, and housing areoffered to citizens at artificially low prices,but seldom are enough produced to satisfyeveryone. Many people go without.

Prices Are Familiar Finally, prices aresomething that we have known about allour lives—they are familiar and easilyunderstood. There is no ambiguity over aprice—if something costs $4.99, then weknow exactly what we have to pay for it.This allows people to make decisionsquickly and efficiently.

Explaining What signaldoes a high price send to buyers and sellers?

�BE AN ACTIVE CITIZEN�7. Research Compare the prices of

a product at three stores. Whatdo the individual prices tell youabout the equilibrium price forthe product?


Student Web Activity Visitciv.glencoe.com and click onStudent Web Activities—Chapter 21 to learn moreabout supply of products.

Shortage: Surplus:Impact onPrices


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Reviewing Key TermsWrite the key term that best matches eachdefinition below.

1. result when the quantity demanded is greaterthan the quantity supplied

2. price when the amount producers are willingto supply is equal to the amount consumersare willing to buy

3. result when the quantity supplied is greaterthan quantity demanded

4. a government payment to encourage or protect a certain economic activity

5. the amount of a good or service that produc-ers are able and willing to sell at variousprices

6. graph showing the quantities supplied ateach possible price

7. table showing quantities supplied at differentpossible prices

8. a measure of how the quantity of a good orservice produced changes in relation tochanges in price

Reviewing Main Ideas9. How does the price of a product affect the

quantity offered for sale?

10. How does supply differ from demand?

11. Why does the supply curve slope upward andto the right?

12. List the factors that can cause an increaseor decrease in supply.

13. How is the equilibrium price determined?

14. What effect does a shortage have on theprice of goods and services?

15. What would an increase in taxes do to theposition of the supply curve?

16. If the price of a product is above its equilib-rium price, what is the result?

17. How does the price system provide for free-dom of choice?

Section 1• Supply is the willingness

and ability to providegoods and services atdifferent prices.

• As the price rises for a good, the quantitysupplied also rises. As the price falls, thequantity supplied falls.

Using Your Foldables Study OrganizerAfter you have completed your foldable,pair up with a classmate. One personshould name a factor that affectssupply. The other person shoulddescribe how that factor affects supply.Take turns in the same manner until youhave named all of the factors.

476

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(t)Matthew McVay/Stock Boston, (c)Jeff Greenberg/Omni-Photo Communications, (b)Pictor

Section 2• A change in supply is a

change in the quantitythat will be supplied ateach and every price.

• Several factors canresult in a change inmarket supply.

Section 3• In free enterprise

systems, pricesserve as signalsto consumers andproducers. Priceshelp decide theWHAT, HOW, andFOR WHOM questions.

Critical Thinking18. Making Generalizations Some people

argue that an equilibrium price is not a fairprice. Explain why you agree or disagreewith this statement.

19. Categorizing Information Suppose thatyou own a store that sells shoes. On a dia-gram like the one below, identify three dif-ferent things you could do to try to increasethe demand for your product.

Analyzing Visuals 20. Reproduce the diagram below. Draw arrows

indicating the direction of movement of thesupply curve—and the new supply curve—for each of the following:

• The supply curve for television sets if theprice of raw materials used in makingTVs falls.

• The supply curve for television sets after the government cuts taxes on sales of TVs.

Practicing Skills21. Using a Computerized Card Catalog

Reread the paragraphs under Learning the Skill on page 470. Then use a librarycomputerized card catalog to research and produce a brochure on marketdemand. Select one product. Trace howthe product was introduced and how themarket reacted to it.

Economics Activity22. What do merchants usually do to move

items that are overstocked? What does thistell you about the equilibrium price for theproduct?

23. Working in teams of five, compare theprices of a single brand of one of theseproducts at four different stores: orangejuice, coffee, chicken soup, frozen pizza,and flour. Calculate the unit price of eachbrand, and choose the brand that is the bet-ter buy for each food product. Share yourfindings with your team and then with theclass as a whole.

Self-Check Quiz Visit the Civics Today Web site atciv.glencoe.com and click on Self-Check Quizzes—Chapter 21 to prepare for the chapter test.

StandardizedTest Practice

Directions: Choose the bestanswer to the following question.

What will happen to prices when thesupply of a product increases anddemand is inelastic?A Prices will rise markedly. B Prices will fall markedly.C Prices rise slightly.D There is no effect on prices.

Test-Taking TipThis question requires you to understand

the economic concepts of supply,demand, and elasticity. If you have trouble

answering the question, review theseconcepts, then try again.


Increased Sales

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Civics Today: Citizenship, Economics, & YouTable of ContentsPreviewing Your TextbookScavenger HuntNational Geographic Reference AtlasUnited States: PoliticalWorld: PoliticalUnited States 2000 Congressional Reapportionment

Reading Skills HandbookIdentifying Words and Building VocabularyReading for a ReasonUnderstanding What You ReadThinking About Your ReadingUnderstanding Text StructureReading for Research

Be an Active ReaderBe an Active CitizenWhy Study Civics?Unit 1: Foundations of American CitizenshipChapter 1: Citizenship and Government in a DemocracySection 1: Government of the People, by the People, for the PeopleSection 2: The Path to CitizenshipSection 3: The Diversity of AmericansChapter 1 Assessment & Activities

Chapter 2: Roots of American DemocracySection 1: Our English HeritageSection 2: The Birth of a Democratic NationSection 3: The Nation's First GovernmentsThe Declaration of IndependenceChapter 2 Assessment & Activities

Chapter 3: The ConstitutionSection 1: The Road to the ConstitutionSection 2: Creating and Ratifying the ConstitutionThe Constitution of the United StatesSection 3: The Structure of the ConstitutionSection 4: Principles Underlying the ConstitutionChapter 3 Assessment & Activities

Chapter 4: The Bill of RightsSection 1: The First AmendmentSection 2: Other Guarantees in the Bill of RightsSection 3: Extending the Bill of RightsSection 4: The Civil Rights StruggleChapter 4 Assessment & Activities

Chapter 5: The Citizen and the CommunitySection 1: The Duties and Responsibilities of CitizenshipSection 2: Volunteering in Your CommunityChapter 5 Assessment & Activities

Unit 2: The National GovernmentChapter 6: CongressSection 1: How Congress Is OrganizedSection 2: The Powers of CongressSection 3: Representing the PeopleSection 4: How a Bill Becomes a LawChapter 6 Assessment & Activities

Chapter 7: The President and the Executive BranchSection 1: The President and Vice PresidentSection 2: The President's JobSection 3: Making Foreign PolicySection 4: Presidential Advisers and Executive AgenciesChapter 7 Assessment & Activities

Chapter 8: The Judicial BranchSection 1: The Federal Court SystemSection 2: How Federal Courts Are OrganizedSection 3: The United States Supreme CourtSection 4: Deciding Cases at the Supreme CourtChapter 8 Assessment & Activities

Unit 3: Political Parties and Interest GroupsChapter 9: Political Parties and PoliticsSection 1: Development of American Political PartiesSection 2: Organization of American Political PartiesSection 3: Role of Political Parties TodayChapter 9 Assessment & Activities

Chapter 10: Voting and ElectionsSection 1: Who Can Vote?Section 2: Election CampaignsSection 3: Paying for Election CampaignsChapter 10 Assessment & Activities

Chapter 11: Influencing GovernmentSection 1: Public OpinionSection 2: The Mass MediaSection 3: Interest GroupsChapter 11 Assessment & Activities

Unit 4: State and Local GovernmentChapter 12: State GovernmentSection 1: The Federal SystemSection 2: The State Legislative BranchSection 3: The State Executive BranchSection 4: The State Judicial BranchChapter 12 Assessment & Activities

Chapter 13: Local GovernmentSection 1: City GovernmentSection 2: County GovernmentsSection 3: Towns, Townships, and VillagesChapter 13 Assessment & Activities

Chapter 14: Dealing With Community IssuesSection 1: How a Community Handles IssuesSection 2: Education and Social IssuesSection 3: Environmental IssuesChapter 14 Assessment & Activities

Unit 5: The Individual, the Law, and the InternetChapter 15: Legal Rights and ResponsibilitiesSection 1: The Sources of Our LawsSection 2: Types of LawsSection 3: The American Legal SystemChapter 15 Assessment & Activities

Chapter 16: Civil and Criminal LawSection 1: Civil CasesSection 2: Criminal CasesSection 3: Young People and the CourtsChapter 16 Assessment & Activities

Chapter 17: Citizenship and the InternetSection 1: Civic ParticipationSection 2: Challenges for DemocracySection 3: Regulating the InternetChapter 17 Assessment & Activities

Unit 6: The Economy and the IndividualChapter 18: What Is Economics?Section 1: The Fundamental Economic ProblemSection 2: Making Economic DecisionsSection 3: Being an Economically Smart CitizenChapter 18 Assessment & Activities

Chapter 19: The American EconomySection 1: Economic ResourcesSection 2: Economic Activity and ProductivitySection 3: Capitalism and Free EnterpriseSection 4: The Economy and YouChapter 19 Assessment & Activities

Chapter 20: DemandSection 1: What Is Demand?Section 2: Factors Affecting DemandChapter 20 Assessment & Activities

Chapter 21: SupplySection 1: What Is Supply?Section 2: Factors Affecting SupplySection 3: Markets and PricesChapter 21 Assessment & Activities

Chapter 22: Business and LaborSection 1: Types of BusinessesSection 2: Labor UnionsSection 3: Businesses in Our EconomyChapter 22 Assessment & Activities

Unit 7: The Free Enterprise SystemChapter 23: Government and the EconomySection 1: The Role of GovernmentSection 2: Measuring the EconomySection 3: Government, the Economy, and YouChapter 23 Assessment & Activities

Chapter 24: Money and BankingSection 1: What Is Money?Section 2: The Federal Reserve SystemSection 3: How Banks OperateChapter 24 Assessment & Activities

Chapter 25: Government FinancesSection 1: The Federal GovernmentSection 2: State and Local GovernmentsSection 3: Managing the EconomyChapter 25 Assessment & Activities

Unit 8: The United States and the WorldChapter 26: Comparing Economic SystemsSection 1: International Trade and Its BenefitsSection 2: Economic SystemsSection 3: Economies in TransitionChapter 26 Assessment & Activities

Chapter 27: Comparing Systems of GovernmentSection 1: Types of GovernmentSection 2: A Profile of Great BritainSection 3: A Profile of ChinaChapter 27 Assessment & Activities

Chapter 28: An Interdependent WorldSection 1: Global DevelopmentsSection 2: The United NationsSection 3: Democracy and Human RightsChapter 28 Assessment & Activities

AppendixWhat Is an Appendix and How Do I Use One?Honoring AmericaCareers HandbookGovernment and Economics Data BankUnited States FactsPresidents of the United StatesDocuments of American HistorySupreme Court Case SummariesGlossarySpanish GlossaryIndexAcknowledgments

Feature ContentsTIMETIME Political CartoonsTIME Teens in ActionTIME An Inside Look At...

Fact Fiction FolkloreStreet Law™: The Law and YouAmerican BiographiesSkillbuilderCritical ThinkingCitizenshipTechnology

Issues to DebateEconomics and YouDocuments of American HistoryLandmark Supreme Court Case StudiesCharts, Graphs, and MapsCharts and GraphsMaps

Student WorkbooksActive Reading Note-Taking Guide - Student EditionChapter 1: Citizenship and Government in a DemocracySection 1: Government of the People, by the People, for the PeopleSection 2: The Path to CitizenshipSection 3: The Diversity of Americans

Chapter 2: Roots of American DemocracySection 1: Our English HeritageSection 2: The Birth of a Democratic NationSection 3: The Nation's First Governments

Chapter 3: The ConstitutionSection 1: The Road to the ConstitutionSection 2: Creating and Ratifying the ConstitutionSection 3: The Structure of the ConstitutionSection 4: Principles Underlying the Constitution

Chapter 4: The Bill of RightsSection 1: The First AmendmentSection 2: Other Guarantees in the Bill of RightsSection 3: Extending the Bill of RightsSection 4: The Civil Rights Struggle

Chapter 5: The Citizen and the CommunitySection 1: The Duties and Responsibilities of CitizenshipSection 2: Volunteering in Your Community

Chapter 6: CongressSection 1: How Congress Is OrganizedSection 2: The Powers of CongressSection 3: Representing the PeopleSection 4: How a Bill Becomes a Law

Chapter 7: The President and the Executive BranchSection 1: The President and Vice PresidentSection 2: The President's JobSection 3: Making Foreign PolicySection 4: Presidential Advisers and Executive Agencies

Chapter 8: The Judicial BranchSection 1: The Federal Court SystemSection 2: How Federal Courts Are OrganizedSection 3: The United States Supreme CourtSection 4: Deciding Cases at the Supreme Court

Chapter 9: Political Parties and PoliticsSection 1: Development of American Political PartiesSection 2: Organization of American Political PartiesSection 3: Role of Political Parties Today

Chapter 10: Voting and ElectionsSection 1: Who Can Vote?Section 2: Election CampaignsSection 3: Paying for Election Campaigns

Chapter 11: Influencing GovernmentSection 1: Public OpinionSection 2: The Mass MediaSection 3: Interest Groups

Chapter 12: State GovernmentSection 1: The Federal SystemSection 2: The State Legislative BranchSection 3: The State Executive BranchSection 4: The State Judicial Branch

Chapter 13: Local GovernmentSection 1: City GovernmentSection 2: County GovernmentsSection 3: Towns, Townships, and Villages

Chapter 14: Dealing With Community IssuesSection 1: How a Community Handles IssuesSection 2: Education and Social IssuesSection 3: Environmental Issues

Chapter 15: Legal Rights and ResponsibilitiesSection 1: The Sources of Our LawsSection 2: Types of LawsSection 3: The American Legal System

Chapter 16: Civil and Criminal LawSection 1: Civil CasesSection 2: Criminal CasesSection 3: Young People and the Courts

Chapter 17: Citizenship and the InternetSection 1: Civic ParticipationSection 2: Challenges for DemocracySection 3: Regulating the Internet

Chapter 18: What Is Economics?Section 1: The Fundamental Economic ProblemSection 2: Making Economic DecisionsSection 3: Being an Economically Smart Citizen

Chapter 19: The American EconomySection 1: Economic ResourcesSection 2: Economic Activity and ProductivitySection 3: Capitalism and Free EnterpriseSection 4: The Economy and You

Chapter 20: DemandSection 1: What Is Demand?Section 2: Factors Affecting Demand

Chapter 21: SupplySection 1: What Is Supply?Section 2: Factors Affecting SupplySection 3: Markets and Prices

Chapter 22: Business and LaborSection 1: Types of BusinessesSection 2: Labor UnionsSection 3: Businesses in Our Economy

Chapter 23: Government and the EconomySection 1: The Role of GovernmentSection 2: Measuring the EconomySection 3: Government, the Economy, and You

Chapter 24: Money and BankingSection 1: What Is Money?Section 2: The Federal Reserve SystemSection 3: How Banks Operate

Chapter 25: Government FinancesSection 1: The Federal GovernmentSection 2: State and Local GovernmentsSection 3: Managing the Economy

Chapter 26: Comparing Economic SystemsSection 1: International Trade and Its BenefitsSection 2: Economic SystemsSection 3: Economies in Transition

Chapter 27: Comparing Systems of GovernmentSection 1: Types of GovernmentSection 2: A Profile of Great BritainSection 3: A Profile of China

Chapter 28: An Interdependent WorldSection 1: Global DevelopmentsSection 2: The United NationsSection 3: Democracy and Human Rights

Haitian Creole SummariesChapit 1: Sitwayènte ak Gouvènman nan yon DemokrasiChapit 2: Rasin Demokrasi Ameriken anChapit 3: Konstitisyon anChapit 4: "Bill of Rights" laChapit 5: Sitwayen an ak Kominote aChapit 6: Kongrè aChapit 7: Prezidan an ak Branch Egzekitif laChapit 8: Branch Jidisyè aChapit 9: Pati Politik ak PolitikChapit 10: Vòt ak EleksyonChapit 11: Enfliyans Gouvènman anChapit 12: Gouvènman Deta aChapit 13: Gouvènman LokalChapit 14: Okipe Pwoblèm Kominote aChapit 15: Dwa ak Responsabilite devan LalwaChapit 16: Lwa Sivil ak KriminèlChapit 17: Sitwayènte ak Entènet laChapit 18: Ki sa yo rele Syans Ekonomik?Chapit 19: Ekonomi Ameriken anChapit 20: DemannChapit 21: Of laChapit 22: Biznis ak TravayChapit 23: Gouvènman an ak Ekonomi anChapit 24: Lajan ak Operasyon BankèChapit 25: Finans GouvènmanChapit 26: Konpare Plizyè Sistèm EkonomikChapit 27: Konpare Plizyè Sistèm GouvènmanChapit 28: Yon Monn Entèdepandan

Reading Essentials and Study Guide - Student EditionChapter 1: Citizenship and Government in a DemocracySection 1: Government of the People, by the People, for the PeopleSection 2: The Path to CitizenshipSection 3: The Diversity of Americans

Chapter 2: Roots of American DemocracySection 1: Our English HeritageSection 2: The Birth of a Democratic NationSection 3: The Nation's First Governments

Chapter 3: The ConstitutionSection 1: The Road to the ConstitutionSection 2: Creating and Ratifying the ConstitutionSection 3: The Structure of the ConstitutionSection 4: Principles Underlying the Constitution

Chapter 4: The Bill of RightsSection 1: The First AmendmentSection 2: Other Guarantees in the Bill of RightsSection 3: Extending the Bill of RightsSection 4: The Civil Rights Struggle

Chapter 5: The Citizen and the CommunitySection 1: The Duties and Responsibilities of CitizenshipSection 2: Volunteering in Your Community

Chapter 6: CongressSection 1: How Congress Is OrganizedSection 2: The Powers of CongressSection 3: Representing the PeopleSection 4: How a Bill Becomes a Law

Chapter 7: The President and the Executive BranchSection 1: The President and Vice PresidentSection 2: The President's JobSection 3: Making Foreign PolicySection 4: Presidential Advisers and Executive Agencies

Chapter 8: The Judicial BranchSection 1: The Federal Court SystemSection 2: How Federal Courts Are OrganizedSection 3: The United States Supreme CourtSection 4: Deciding Cases at the Supreme Court

Chapter 9: Political Parties and PoliticsSection 1: Development of American Political PartiesSection 2: Organization of American Political PartiesSection 3: Role of Political Parties Today

Chapter 10: Voting and ElectionsSection 1: Who Can Vote?Section 2: Election CampaignsSection 3: Paying for Election Campaigns

Chapter 11: Influencing GovernmentSection 1: Public OpinionSection 2: The Mass MediaSection 3: Interest Groups

Chapter 12: State GovernmentSection 1: The Federal SystemSection 2: The State Legislative BranchSection 3: The State Executive BranchSection 4: The State Judicial Branch

Chapter 13: Local GovernmentSection 1: City GovernmentSection 2: County GovernmentsSection 3: Towns, Townships, and Villages

Chapter 14: Dealing With Community IssuesSection 1: How a Community Handles IssuesSection 2: Education and Social IssuesSection 3: Environmental Issues

Chapter 15: Legal Rights and ResponsibilitiesSection 1: The Sources of Our LawsSection 2: Types of LawsSection 3: The American Legal System

Chapter 16: Civil and Criminal LawSection 1: Civil CasesSection 2: Criminal CasesSection 3: Young People and the Courts

Chapter 17: Citizenship and the InternetSection 1: Civic ParticipationSection 2: Challenges for DemocracySection 3: Regulating the Internet

Chapter 18: What Is Economics?Section 1: The Fundamental Economic ProblemSection 2: Making Economic DecisionsSection 3: Being an Economically Smart Citizen

Chapter 19: The American EconomySection 1: Economic ResourcesSection 2: Economic Activity and ProductivitySection 3: Capitalism and Free EnterpriseSection 4: The Economy and You

Chapter 20: DemandSection 1: What Is Demand?Section 2: Factors Affecting Demand

Chapter 21: SupplySection 1: What Is Supply?Section 2: Factors Affecting SupplySection 3: Markets and Prices

Chapter 22: Business and LaborSection 1: Types of BusinessesSection 2: Labor UnionsSection 3: Businesses in Our Economy

Chapter 23: Government and the EconomySection 1: The Role of GovernmentSection 2: Measuring the EconomySection 3: Government, the Economy, and You

Chapter 24: Money and BankingSection 1: What Is Money?Section 2: The Federal Reserve SystemSection 3: How Banks Operate

Chapter 25: Government FinancesSection 1: The Federal GovernmentSection 2: State and Local GovernmentsSection 3: Managing the Economy

Chapter 26: Comparing Economic SystemsSection 1: International Trade and Its BenefitsSection 2: Economic SystemsSection 3: Economies in Transition

Chapter 27: Comparing Systems of GovernmentSection 1: Types of GovernmentSection 2: A Profile of Great BritainSection 3: A Profile of China

Chapter 28: An Interdependent WorldSection 1: Global DevelopmentsSection 2: The United NationsSection 3: Democracy and Human Rights

Spanish Reading Essentials and Study Guide - Student EditionCapítulo 1: La ciudadanía y el gobierno en una democraciaSección 1: Gobierno del pueblo, por el pueblo y para el puebloSección 2: El camino a la ciudadaníaSección 3: La diversidad de los estadounidenses

Capítulo 2: Las raíces de la democracia estadounidensesSección 1: Nuestra herencia inglesaSección 2: El nacimiento de una nación democráticaSección 3: Los primeros gobiernos de la nación

Capítulo 3: La ConstituciónSección 1: El camino a la ConstituciónSección 2: La creación y la ratificación de la ConstituciónSección 3: La estructura de la ConstituciónSección 4: Los principios de la Constitución

Capítulo 4: La Declaración de DerechosSección 1: La Primera EnmiendaSección 2: Otras garantías de la Declaración de DerechosSección 3: Ampliación de la Declaración de DerechosSección 4: La lucha por los derechos civiles

Capítulo 5: El ciudadano y la comunidadSección 1: Los deberes y las responsabilidades de la ciudadaníaSección 2: El trabajo voluntario en tu comunidad

Capítulo 6: El gobierno nacionalSección 1: Cómo está organizado el CongresoSección 2: Las facultades del CongresoSección 3: La representación del puebloSección 4: Cómo se convierte en ley un proyecto legislativo

Capítulo 7: El presidente y el poder ejecutivoSección 1: El presidente y el vicepresidenteSección 2: El trabajo del presidenteSección 3: La política exteriorSección 4: Los consejeros presidenciales y las dependencias del ejecutivo

Capítulo 8: El poder judicialSección 1: El sistema de tribunales federalesSección 2: Cómo están organizados los tribunales federalesSección 3: La Corte Suprema de Estados UnidosSección 4: Cómo se deciden los casos en la Corte Suprema

Capítulo 9: Los partidos políticos y la políticaSección 1: Surgimiento de los partidos políticos estadounidensesSección 2: Organización de los partidos políticos estadounidensesSección 3: Función de los partidos políticos en la actualidad

Capítulo 10: Votación y eleccionesSección 1: ¿Quién puede votar?Sección 2: Campañas electoralesSección 3: Cómo se pagan las campañas electorales

Capítulo 11: Influencias del gobiernoSección 1: La opinión públicaSección 2: Los medios de comunicaciónSección 3: Los grupos de presión

Capítulo 12: El gobierno estatalSección 1: El sistema federalSección 2: El poder legislativo estatalSección 3: El poder ejecutivo estatalSección 4: El poder judicial estatal

Capítulo 13: Gobierno localSección 1: El gobierno municipalSección 2: Gobiernos condalesSección 3: Pueblos, municipios y poblaciones

Capítulo 14: Soluciones para las comunidadesSección 1: Cómo maneja sus asuntos una comunidadSección 2: Asuntos educativos y socialesSección 3: Asuntos ambientales

Capítulo 15: Derechos y responsabilidades legalesSección 1: El origen de nuestras leyesSección 2: Clases de derechoSección 3: El sistema legal estadounidense

Capítulo 16: Derecho civil y penalSección 1: Casos civilesSección 2: Casos penalesSección 3: Los menores de edad y los tribunales

Capítulo 17: La ciudadanía y la InternetSección 1: La participación cívicaSección 2: Retos de la democraciaSection 3: Regulación de internet

Capítulo 18: La economía y el individuoSección 1: El problema económico fundamentalSección 2: Las decisiones económicasSección 3: Cómo ser un ciudadano que sabe economía

Capítulo 19: La economía estadounidenseSección 1: Recursos económicosSección 2: Actividad económica y productividadSección 3: Capitalismo y libre empresaSección 4: La economía y tú

Capítulo 20: La demandaSección 1: Qué es la demandaSección 2: Factores que influyen en la demanda

Capítulo 21: OfertaSección 1: Qué es la ofertaSección 2: Factores que influyen en la ofertaSección 3: Mercados y precios

Capítulo 22: Empresas y TrabajadoresSección 1: Clases de empresasSección 2: Sindicatos de trabajadoresSección 3: Las empresas en nuestra economía

Capítulo 23: El gobierno y la economíaSección 1: El papel del gobiernoSección 2: Cómo se mide la economíaSección 3: El gobierno, la economía y tú

Capítulo 24: El dinero y los bancosSección 1: Qué es el dineroSección 2: El sistema de la Reserva FederalSección 3: Cómo funcionan los bancos

Capítulo 25: Finanzas del gobiernoSección 1: El gobierno federalSección 2: Gobiernos estatales y localesSección 3: El manejo de la economía

Capítulo 26: Comparación de sistemas económicosSección 1: El comercio internacional y sus ventajasSección 2: Sistemas económicosSección 3: Economías en transición

Capítulo 27: Comparación de sistemas de gobiernoSección 1: Clases de gobiernoSección 2: Un perfil de Gran BretañaSección 3: Un perfil de China

Capítulo 28: Un mundo interdependienteSección 1: Acontecimientos mundialesSección 2: La Organización de las Naciones UnidasSección 3: Democracia y derechos humanos

Spanish SummariesCapítulo 1: La ciudadanía y el gobierno en una democraciaCapítulo 2: Las raíces de la democracia estadounidensesCapítulo 3: La ConstituciónCapítulo 4: La Declaración de DerechosCapítulo 5: El ciudadano y la comunidadCapítulo 6: El gobierno nacionalCapítulo 7: El presidente y el poder ejecutivoCapítulo 8: El poder judicialCapítulo 9: Los partidos políticos y la políticaCapítulo 10: Votación y eleccionesCapítulo 11: Influencias del gobiernoCapítulo 12: El gobierno estatalCapítulo 13: Gobierno localCapítulo 14: Soluciones para las comunidadesCapítulo 15: Derechos y responsabilidades legalesCapítulo 16: Derecho civil y penalCapítulo 17: La ciudadanía y la InternetCapítulo 18: La economía y el individuoCapítulo 19: La economía estadounidenseCapítulo 20: La demandaCapítulo 21: OfertaCapítulo 22: Empresas y TrabajadoresCapítulo 23: El gobierno y la economíaCapítulo 24: El dinero y los bancosCapítulo 25: Finanzas del gobiernoCapítulo 26: Comparación de sistemas económicosCapítulo 27: Comparación de sistemas de gobiernoCapítulo 28: Un mundo interdependiente

Standardized Test Skills Practice Workbook - Student EditionActivity 1: Interpreting Charts and Tables Activity 2: Using Time LinesActivity 3: Interpreting Diagrams Activity 4: Identifying the Main Idea Activity 5: Interpreting a Visual Image Activity 6: Using a Bar Graph to Interpret Data Activity 7: Interpreting Graphs Activity 8: Interpreting Primary Sources Activity 9: Comparing and Contrasting Activity 10: Making Inferences Activity 11: Interpreting a Political Cartoon Activity 12: Persuasive Writing About an Issue Activity 13: Recognizing Point of View Activity 14: Forming Hypotheses Activity 15: Perceiving Cause-and-Effect RelationshipsActivity 16: Distinguishing Between Fact and NonfactActivity 17: Evaluating a Web SiteActivity 18: Making Decisions Activity 19: Predicting Outcomes Activity 20: Classifying Facts and DetailsActivity 21: Analyzing Graphs and TablesActivity 22: Constructing Bar Graphs to Analyze DataActivity 23: Interpreting and Evaluating EditorialsActivity 24: Outlining Information for WritingActivity 25: Analyzing Statistics to Draw ConclusionsActivity 26: Making Generalizations Activity 27: Recognizing Forms of Propaganda Activity 28: Reading a Special-Purpose Map

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