Economics and the Great Depression
What happened on October 29th, 1929?
The Stock Market Crash
What is the word for the amount of goods/services a company (or companies) have to offer buyers?
Supply
What are you buying when you buy a share of a company?
A piece of a company
What did people do with their money when the stock market began to crash?
They began to take their money out of the stock market and/or they sold their stock.
If there is a limited supply and a high demand for a specific good, how is it going to be priced? (High or Low?)
HIGH
What happens on a day to day basis to the value of shares?
Their value goes up and down/fluctuate
What was the economy like in the 1920s which led many people to invest?
Booming! (It was doing TOO well)
If there is a large supply and low demand for a specific good, how is it going to be priced? (High or Low?)
LOW
Mrs. Young bought a share of Apple in 2003 for $30 and its now (2025) valued at $130. If she decided to sell it how much would she have made in profit?
$100
HOW did the stock market crash lead to high unemployment during the Depression.
Investors lost money, banks had to close, consumer spending declined and as a result production declined. Businesses were forced to lay off workers.
What is it called when the supply matches the demand for a specific good?
AND How would the good be priced?
Equilibrium
In the middle/balanced/even
Luxury Cars vs. Economy Cars During a Recession
During a recession, people have less money to spend, and they start buying fewer luxury cars. However, sales of economy cars stay the same or even increase. Why do you think this happens, and how does supply and demand affect the prices of both types of cars?
The demand shifts away from luxury cars to economy cars. Less demand for luxury cars will drive DOWN price. High demand for economy cars will drive UP prices.
What is the government agency that warned against investing in the stock market called?
Federal Reserve Bank (The Fed)
Give me ONE real life example of how supply and demand can affect prices. Be ready to explain!
Ms. Dodge's discretion
What are TWO things you would consider when you decide what stocks you want to invest in.
Ms. Dodge's discretion