Definitions
What is a consumer?
Anyone who buys or uses goods and services to satisfy their own personal needs and wants
What is Supply?
Supply is how much of a good or service a producer (a business) is able and willing to make for sale to consumers.
What is the law of demand?
As the price of a good or service increases, consumer demand for that product decreases.
Does this demand curve show an increase or decrease in demand? (Slide 2)
Increase in Demand
What is the name of the chart that shows the supply of a good/service depending on price?
Supply Schedule
What is Economics the study of?
how people, businesses, and governments use limited resources to meet unlimited wants.
What is the law of supply?
As the price of a good or service increases, supply for that product increases.
List 3 factors that can cause a change in demand
1. Price of a good
2. Consumer taste
3. Population
4. Change in income
What is this part of the Supply & Demand graph called? (Slide 3)
Market Equilibrium
What is Surplus?
A situation in which the quantity supplied is greater than the quantity demanded at a given price
What is a good and what is a service?
Good - Physical items we can buy
Services - Intangible actions, skills or work done by other
List 2 factors that can cause a decrease in supply?
1. Cost of production increase
2. Less competition
3. Price is expected to increase soon
A popular celebrity promotes a new drink. What might happen to demand?
Demand would increase
Draw a graph showing an increase in supply?
Slide 4
Give a good example of a substitute good and a complementary good for Peanut Butter
Substitute - Vegemite, jam, nutella,
Complimentary - Bread, wraps, bagel
What is market equilibrium?
Where the quantity of a good or service demanded by consumers equals the quantity supplied by producers. No Shortages or Surplus.
Why does a producer want to make more of a good when the price rises?
The more than is being charged for a good or service, the more opportunity for them to make a profit.
What does a demand schedule show?
The exact quantity of a good or service that consumers are willing and able to buy at various different price points.
Draw a graph showing a decrease in demand
Slide 5
Pick a number between 1 and 10
6
What are the four factors of production?
Land, Labor, Capital, and Entrepreneurship
Does a supply curve slope upwards left to right or right to left?
left to right
Why might demand for hot chocolate be higher in winter?
Because cold weather increases people's desire for warm drinks. This is a change in consumer preferences, so demand for hot chocolate tends to increase in winter.
When the demand for corn is 220 million tons, what is the price per ton? (Slide 6)
Price is $20,000 per ton
How does an increase in population change demand?
When population increases, demand will also increase as there are more people who are seeking the good or service.