012120 Econ Supply 50m

Good Day!

DRAW A LINE SEPARATING TODAY & YESTERDAY1) Write: Date: 01/22/10, Topic: Supply2) On the next line, write “Opener #10” and then:

1) Plot your mood, reflect in 1 sent.2) Respond to the opener by writing at least 2 sentences about:Your opinions/thoughts OR/AND

Questions sparked by the clip OR/AND

Summary of the clip OR/AND

Other things going on in the news.Announcements: NoneIntro Music: Untitled

Pre-Wheat Price Increase

After Wheat Price Increase

Cost

Profits

Agenda1) Intro to demand + supply

End Goal, you will be able to…1) What influences demand + supply

Reminder1) Find & complete your 4 news pods

Review1) Law of Demand: Price lower, buy more of it.

Price is higher, buy less of it (not about wanting, about really buying)

2) Demand Curve: Demand shown as a line graph, dots should how much you buy at that dot(goes down)

(sUPply curve:is a “S” and goesup)

(It usually isn’t a curve or a straight line)

Work #, Title “Demand Review”Work with your group:Come up examples for each category1) Income Effect2) Consumer Taste3) Expectations4) Changes in Substitutes5) Changes in Compliments6) Examine the state of demand (how it’s currently doing with 1-5) for the product assigned to your group (on the board).

Work #, Title “Review”1) Graph 1: Draw a Standard Supply and Demand Chart (to look like a X). Write in $ and # labels, and label demand line “D1,” and Supply Line “S1.”2) Alter Standard Demand, Product Found Toxic, label new demand line “D2”3) Alter Standard Demand: Product Found to Help Prevent Cancer, label “D3”

D1, D2, D3 all on the same chart.

1) Next 3 graphing sheets2) Set up the chart, $1-10, Q#1-103) Graph 2: Ask your partner how many

pilot pens they buy at each price. Place the dots, and draw the line in the end by connecting the dots.

1) Next 3 graphing sheets2) Set up the chart, $1-10, Q#1-103) Graph 2: Ask your partner how many

pilot pens they buy at each price. 4) Graph 3: Ask your partner how many

Pilot pens they’d buy at each price if the pens could magically make you do 1% better on tests.

1) Next 3 graphing sheets2) Set up the chart, $1-10, Q#1-103) Graph 2: Ask your partner how many

pilot pens they buy at each price. 4) Graph 3: Ask your partner how many

Pilot pens they’d buy at each price if the pens could magically make you do 1% better on tests.

5) Graph 4: Ask your partner how many Pilot pens they would buy if they discovered that every time they used those pens, diabolically, it would make a baby somewhere cry.

Work #, Title “Review”

1-3) What the chart you drew.

4) List 2 examples of compliments.

5) List 2 examples of substitutes.

6) If income drops predict the impact on hotdogs. Predict the impact on $15 threadless.com trendy t-shirts.

Notes #10a, Title: “Supply” 1) Supply: How many biz will produce + sell at a

price.2) Profit Margin: Difference between cost to make

and selling price.Individual Supply Schedule: What a single

supplier is willing to produce at each priceMarket Supply: Adding together what all the

suppliers are willing to produce at each priceChange in Supply Quantity: Finding different

dots up + down on a line (line does not move).Change in Supply (Overall): Moving a line left or

line right. The SITUATION has changed to make + - produced at all prices (profit margin has changed at all pricing points)

Company 1 Company 2

Cost

Profits

Company 1 Company 2

Cost

Profits

Holding Back Supply Despite Demand: Keeping Exclusivity/Collectible Status

Holding Back Supply Despite Demand: Keeping Exclusivity/Collectible Status

3) Productivity: How much we can produce. (Being more productive frees up our time to be: a) even more productive/more supply or b) leisurely)

4) Things that Change Profit Margin, Thereby Change Supply at All Pricing Points:

a) Cost of Input Changes: Cheaper or more expensive raw materials (include wages)

a) Cost of Input Changes: Cheaper or more expensive raw materials (include wages)

US biz are finding it hard to make a profit here, should we get rid of min. wage ($8)? (Since labor is the largest resource cost for biz)

JOBS-YES MIN WAGE

2) Every worker deserves a wage to survive.

3) Low wage workers don’t have the power to fight for higher wages w/o gov help.

3) Companies can afford it by taking in less profits.

COST-NO MIM WAGE

2) Businesses can’t afford to stay in business or can’t hire as many workers.

3) Some jobs don’t deserve $8.

3) Shoppers deserve lower prices. It benefits more people

1 2 3 4 5

China USA

Cost

Profits

Notes #9b, Title: “Supply” a2) Controlling Cost of Inputs

i) Find cheaper workers.ii) Negotiate lower/long term pricesiii) Buy bulk supplies when price lowiv) Produce own supplies

(possibly inefficient, hurt more)v) Create a way to use other supplies

(substitutes).

b) Productivity Changes: Workers working harder or slower to produce more or less. If you can’t pay less, you can make work more!

b) Productivity Changes: Workers working harder or slower to produce more or less. If you can’t pay less, you can make work more!

b) Productivity Changes: Workers working harder or slower to produce more or less. If you can’t pay less, you can make work more!

Productivity Gains 5xLower Wages

Cost 5x

Profits

Company 1 Company 2

Cost

Profits

b) Productivity Changes: Workers working harder or slower to produce more or less.

b2) Ways to Increase Worker Productivityi) Pay more + hire better.ii) Make workers feel like a family.iii) Train workers + give feedback.iv) Continue Improvement (CI): Give

workers power to improve their job v) Performance Pay

c) Technology Changes: Inventions that make work faster.

Clip Prep: This commercial is a satire of the how workers are being replaced with robots, to increase productivity.

c) Technology Changes: Inventions that make work faster.

Company 1 Company 2

Cost

Profits

If the technology is affordable, should we earns more profits and lower prices for shoppers AND fire the workers? (Since labor is the largest resource cost for biz)

SAVE JOBS

3) If everyone replaces jobs with tech, what jobs will be left.

2) Companies can afford it by taking in less profits.

MORE TECH

3) If you don’t, others will, you will go out of business.

2) Shoppers deserve lower prices. It benefits more people

1 2 3 4 5

Work #, Title “Supply Review”

Work with your group:Come up examples for each category1) Input Cost2) Worker Productivity3) Technology4) Examine the state of demand (how it’s currently doing with 1-3) for the product assigned to your group (on the board).

Work #10a, Title “Marketplace”1) Record your profits at end of the simulation2) Reflect on what can be done better to increase business next time, focus on what products are in demand (not mean you can or want to supply it) and how marketing can be improved next time (branding+advertising).

If you didn’t record last weeks, do that as 0)1) Remember you can pay with checks

Homework: 1) Study today’s notes + work sections

for a possible workbook quiz.2) Pick and listen to your 4 news

podcast by next Monday.

Workbook Check: If your name is called, drop off your workbook with Mr. Chiang (if requested, points lost if your workbook is not turned in)