ECONOMICS BASICS
What is economics mainly about?
How people make choices about limited resources
Which is a NEED?
Food
Demand means:
How much buyers want and are willing and able to buy
A store gets 1,000 extra bottles of water. What happens to supply?
Increases
Why might a store put an item on sale?
Nobody wants it or there is too much of it
What does scarcity mean?
Resources are limited, but wants are unlimited
Which is most likely a WANT?
A. Water
B. Basic food
C. A place to live
D. The newest iPhone
D. The newest iPhone
Supply means:
How much sellers are willing to sell
A popular toy becomes extremely popular. More people want it. What happens to demand?
Increases
Why might gas prices increase after a major disruption to the supply of gasoline?
Less gasoline is available
Give one example of a scarce resource.
Money, time, food, gasoline, land, etc.
You need transportation to get to work. You want a brand-new luxury car. Which is the NEED?
Transportation
Who is connected to DEMAND?
Buyers
A store has too many winter coats after winter ends. What will probably happen to the price?
Decrease
Why might airline tickets become more expensive around a major holiday?
More people want to travel
You have $30 but want a new video game, new sneakers, and dinner with friends. Can you have all three? Why?
No, because your money is limited
You have $20 left until payday. Which choice is the most responsible?
Buy food you need
Who is connected to SUPPLY?
Sellers
There are only 5 apartments available, but 100 people want an apartment. What will probably happen to apartment prices?
Increase
A new gaming system is released and everyone wants one, but stores don't have many. What is happening?
High demand and low supply
You have $50. You spend it on a concert ticket instead of buying new sneakers. What is the opportunity cost?
The sneakers you gave up
Why can something be a WANT for one person but more like a NEED for another person?
Because people's situations and circumstances are different.
A store has 100 pairs of sneakers, but only 10 people want to buy them. Is supply high or low? Is demand high or low?
Supply is high and demand is low.
A product becomes less popular AND stores have a large supply of it. What will probably happen to its price?
Decrease
A bakery makes 500 cupcakes for a special event, but only 100 people show up. What might happen to the price of the leftover cupcakes?
It might decrease