Demand and Supply
Elasticity
Graphs, Graphs, Graphs
I Want to Start a Business!
100
A place where buyers and sellers meet to exchange goods and services for a certain price ($). It may or may not be a real place!
What is a market?
100

Economic concept used to measure the change in the aggregate quantity demanded for a good or service in relation to price movements of that good or service.

What is elasticity?

100
It shows the Law of Demand: The cheaper the price, the more people will buy it. Vice versa.
What is the Market Demand Curve?
100
"I'd like to work by myself. Please don't bother me."
What is a sole proprietorship?
200
The quantity (amount) of good/service that a buyer will buy at different prices. It also involves how much the seller is producing.
What is supply?
200

Change in price leads to a smaller percentage in demand

What is inelastic demand?

200
It shows the Law of Supply. As price increases, the supplier will make more product (so they can make more money!)
What is the Supply Curve?
200
"I want to produce only white rice, but my business partner wants to produce brown and white rice."
What is a partnership?
300
The HIGHER the price of the product, the LESS people will buy it. The LOWER the price, the MORE people will buy the product.
What is Law of Demand?
300

Change in price leads to a bigger percentage in demand

What is elastic demand?

300
You can find equilibrium price by using these two curves (lines).
What is the way to find equilibrium price?
300
"I am a shareholder."
What is a corporation?
400
As product price INCREASES, the supplier will make MORE of this product (to make more $$$). As product price DECREASES, the supplier will make LESS product (to save $$$).
What is the Law of Supply?
400
heart medication, bread, milk, TTC metropass, fruits. You will keep buying these products even if prices rise. We need them!
What are inelastic products?
400
Consumer expectations, taste and preferences, price of other goods, income, population.
What is the graph for CHANGE IN DEMAND?
400
Personal liability belongs to only one person. If I lose a lot of money and cannot pay it back, the bank will take my house, my car and my boat.
What is sole proprietorship?
500
The amount demanded equals with amount supplied. This point of intersection is called: _________________.
What is the equilibrium price?
500
Gucci luxury bags, candy, chips. You won't buy it as it gets more expensive! You would just change to a new product.
What are elastic products?
500
A rice farmer bought new farming equipment which will help him produce more rice!
What is the GRAPH FOR CHANGE/INCREASE IN SUPPLY?
500
I have no personal liability. If the business goes down, I do not need to pay money to the bank using my house or car.
What is a corporation?
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