Outcome of Supply and Demand Scenario
Jan underestimated the number of customers she would have: She sold 58 cones, but the ice cream ran out before everyone could be served.
What happened to the ice cream?
Shortage
In Simplewood, citizens live in hunter-gatherer communities to gather what they need. They usually grow, gather, hunt or barter for the supplies they do not have.
Traditional economic system
When making choices, we weigh the ________________ and _____________.
Benefits/costs
Pablo dropped his phone and needs to buy a new phone case. What is Pablo?
Consumer
4 of the students left Travis negative reviews after their tutoring session with him. Do you think he will have a shortage or surplus of appointments after? Explain.
Shortage. The shifter is the negative reviews.
Jon was selling bouquets of flowers, but he forgot to remove the pollen! When one customer has a sneezing fit, most decide to take their business elsewhere.
What happens to Jon's supply? What's the shifter?
Surplus
Pollen
Profits, private ownership of resources, and competition is most important in this government/economic system.
Capitalism
When supply is greater than demand, there is a _____. When demand is greater than supply, there is a _____.
Surplus.
Shortage.
Paul owns an apple orchard. He sells the fruits to groceries but also allows others to pay a fee to come pick apples directly. What is Paul?
Producer
Jon has trouble selling flowers after the pollen incident. What are 2 things he could do to recover from the situation?
Lower his prices
Embark on an advertising campaign to change his image
Offer sales/discounts (buy 1, get 1 free etc.)
Travis expected to be busy. 10 students booked 30-minute tutoring sessions with him. Only 7 people actually attended their appointments. Travis has a ___________ of time. Bonus: How much?
Surplus
1 hour & 30 minutes (3 sessions)
In Ecotopia, the government is the main producer and consumer of wood. It also decides how much supply is produced and the price it is sold.
Command economic system
This government/economic system is designed to minimize inequality. As a result, it has public and/or shared citizen and government ownership of resources, and increased government/community involvement in the economy
Socialism/Communism
Paul wants to buy a juicer so that he can make apple juice to sell. Jorge has agreed to sell Paul three large juicers.
What is Paul in this exchange? What is Jorge?
Paul = consumer
Jorge = producer
Jan stocked up on chocolate ice cream before she discovered a viral article stating that chocolate ice cream contains too many calories. What are two things she could do to recover from the situation?
Lower her prices for chocolate
Offer sales/discounts (e.g. get free chocolate when buy other flavors)
Raise her prices for other flavors
Ada had 3 customers waiting to get their hair braided on Tuesday afternoon. Yet 7 other clients showed up unexpectedly. There is a __________ of clients.
Surplus
Indivopolis breaks away from Econtopia to become a new nation. Citizens decide there will be minimal government regulation: Private businesses will decide how much to sell things for and for what price. They will compete with others for consumers and profits.
market economic system
What are the two types of scarcity?
Scarce time and scarce spending power (money)
Amount of people who want to buy laptops is equal to the number of people who want to sell laptops
Equilibrium
A celebrity visited Ada's hair salon recently and posted the experience in a glowing Tiktok video. What are two ways Ada could take advantage of this situation?
Raise her prices
Increase her store hours
Hire more hair braiders
Nora has 4 hard-working employees in her small business (a daycare). Rent is due soon, and the profits from every day count. However, 2 workers come down with the flu. Nora now has a ____________ of workers? What can she do to best respond to the situation?
Shortage.
Close the daycare.
Temporarily hire others
Convince her friends/relatives to help out
Arrange with a nonprofit to have volunteers come in.
In the country MarkCom, individuals with money own property. There is some competition between companies and consumers can choose who to patronize. Government interference in the economy is limited to regulation to prevent corruption and protect consumer safety.
Mixed economic system
Explain the difference between the four economic systems
Traditional - customs and communalism
Market - Individualism (private ownership, competition, supply and demand)
Command - Government controlled (supply, price, etc.)
Mixed - Blend of market + command (some individual rights, some government regulation, mix of private and public ownership)
Name all 4 economic systems
Traditional, Market, Command, and Mixed
What can Travis do to recover after the 4 negative reviews?
Highlight his positive reviews
Get teachers/professors to recommend him
Offer a sale/discounts
Offer refunds if the dissatisfied reviewers can prove the sessions were negative