F.O.P.
Good or Service: haircut
service
Mrs. Ramos decides to open a bakery in her town. She finds a small shop in a busy neighborhood where she can bake fresh bread, cakes, and cookies each morning. She buys an oven, mixing bowls, and a display case for her baked goods. Mrs. Ramos spends hours every day making sure her treats are delicious, and she came up with the idea for her bakery because she noticed that many people in her community love baked goods.
What would be the entrepreneur in this scenario?
Mrs. Ramos
As consumers, we have unlimited _______
wants
What does quantity mean?
the amount/how many
A store recently ordered a large shipment of swimsuits. However, a cold front has hit the area. Consider the market for swimsuits:
What happened to the supply?
What happened to the demand?
What will happen to the price?
Supply- increase
Demand- decrease
Price- decrease
Material things that you can buy and sell are known as
Goods
The Jackson family buys a large plot of land to start an organic vegetable farm. They plant carrots, lettuce, tomatoes, and more. They have tools like shovels, watering hoses, and tractors to help them grow and harvest the crops. Each family member helps with different jobs on the farm. The Jacksons wanted to start the farm to provide fresh vegetables to local markets and promote healthy eating.
What would be the land in this scenario?
carrots, lettuce, tomatoes
Why does scarcity exist
because there is a limited amount of resources, but unlimited wants
What is supply?
the amount produced/available
Government enacts a tax on soda suppliers and the price of producing soda increases.
What will happen with the supply of soda?
What will happen with the price to buy soda?
supply will lower and price will increase
What would be three goods that are present in a classroom?
answers vary
The Jackson family buys a large plot of land to start an organic vegetable farm. They plant carrots, lettuce, tomatoes, and more. They have tools like shovels, watering hoses, and tractors to help them grow and harvest the crops. Each family member helps with different jobs on the farm. The Jacksons wanted to start the farm to provide fresh vegetables to local markets and promote healthy eating.
What would be the capital goods in the scenario?
shovels, watering hoses, and tractors
What does the word scarce mean?
Not a lot of it
What is demand?
how much is wanted
There has been three new factories built that make cars in the area. Consider the market for cars.
Supply?
Demand?
Price?
Demand- same
Price- goes down
Goods used to create other goods are known as
Capital goods
Three friends decide to start a car wash in their neighborhood during the summer. They set up in a parking lot where they have buckets, soap, sponges, and a water hose. Each of them works on different parts of cleaning the cars, like washing, drying, and polishing. The friends thought of the idea because they wanted a way to earn some money while helping people keep their cars clean.
What would be the labor in this scenario?
the friends cleaning the cars, like washing, drying, and polishing
If an item is scarce, what happens to the price?
it becomes more valuable and costs more
People who buy goods and services are known as
consumers
Bob's burger shack has discounted burger to 50% of their original price.
What will happen to the demand of Bob's burgers and why?
What does the law of demand say?
the demand will increase, because the price has dropped
the law of demand: as price decreases, demand increases
the owner of a business/idea maker
entrepreneur
Identify how the four factors of production are present in this scenario:
A couple opens a small coffee shop in the downtown area. They buy a coffee machine, tables, chairs. They use supplies like coffee beans and sugar. They each take turns making drinks, serving customers, and keeping the shop clean. They decided to open the shop because they noticed a lot of people in the area wanted a cozy place to get coffee.
land- coffee beans, milk, sugar
labor- the couple is making drinks, serving customers, keeping the shop clean
capital goods- coffee machine, tables, chairs
entrepreneurs- the couple
What are the three questions of economics?
What to produce
How should it be produced
Who gets what is produced
What is the law of supply?
As a price increases, the more suppliers are willing to make
Henry is willing to sell soap at 5 dollars a bar, and Emma is willing to pay the 5 dollars for Henry's soap. In this scenario, 5 dollars is the ________________price or the ____________price.
What is the definition of those terms?
equilibrium, market
the price that the supplier is willing to sell at and the consumer is willing to pay