Consumers and producers
What is the term for people who buy products?
Consumers
What does it mean to make a smart choice?
Answers Vary
Rational decision
smart choice
best choice
etc
What does opportunity cost mean?
The value of the next best choice you give up
Who makes the products that consumers buy?
producers
If a student has $50 to spend and must choose between a new textbook for $40 or a concert ticket for $30, which option is the rational decision if they need the textbook for class?
Buying the textbook for $40 is a rational decision because it is necessary for their education.
What is trade-off in economics?
The concept of giving up one thing to obtain another
The quantity of a good or service that consumers are willing and able to purchase at various prices.
Demand
Rational decision......YES OR NO
You live on your own and you bought a vehicle that costs $625 a month. Your monthly salary is $1, 150.00
NO!
What does scarcity mean?
There are not enough resources to meet all our wants.
The quantity of a good or service that producers are willing to sell at various prices.
supply
Why is it important to make rational decisions
answers vary
How does scarcity affect prices?
When something is scarce, its price usually goes up because more people want it