Supply and Demand
What is demand?
How much of something we as consumers want
What is scarcity?
What are the three types of resources?
Land, labor, capital
What is economics?
The study of choices.
What is a trade off?
An alternative choice
What is supply?
How much of a good/service that a business is producing
What is a surplus?
When there more supply than demand
What is a capital resource?
Any man-made property that helps you produce your good/service.
Examples - Warehouse, tractor, saw.
Describe a price ceiling.
The maximum price of a good/service that a business can charge.
Upward, positive
What causes a supply/demand shift?
A non-price change
What is elasticity?
When a good's demand/supply is very sensitive to a price change
If resources become more expensive, what will happen to to supply or demand FIRST?
Supply will decrease/fall
Who answers the economic decisions in a free market economy?
If supply decreases, what happens to equilibrium price/quantity?
Eq. Quantity - Increase
Why is equilibrium important for both producers and consumers?
It shows the best price and quantity that is fair for consumers, but also makes the most profit for producers
What is opportunity cost?
What you lose/give up when making a decision
Example - Losing time/money when going to college
How does a price floor impact labor?
Minimum wage is the lowest amount a worker can be paid.
What is one non-price change that can impact supply/demand?
Tastes, competition, price of other products, etc.
Where did Mr. Cole go to college (there are 2 answers!)
Ithaca
St. John Fisher
What will happen to equilibrium price and equilibrium quantity if the demand of a good shifts to the right?
Eq. Price = INCREASE
Eq. Quantity = INCREASE
What is a mixed economy?
An economy that combines elements of other economic systems
USA - has elements of command and free market
DAILY DOUBLE - Worth 1000 points
List 3 inelastic goods
Insulin (or medicine in general), gasoline, tobacco, electricity, salt, sugar, etc
What is a complimentary product and how does the price of one impact other goods?
A good that goes with another good (hot dog buns to hot dogs). If the price of one goes up, the demand for the other will go down since they are typically purchased together.
Name all three districts Mr. Cole has taught in
East Irondequoit
Gananda
HF-L