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http://www.youtube.com/watch?v=CouzZNjuyRM&feature=related. JA Economics. Demand – Chapter 3. http://www.youtube.com/watch?v=kKAU856roF0&feature=related. Why it Matters. Consumer Limited Income Good choices. Page 32. FREE enterprise. Market competition. entrepreneurship. - PowerPoint PPT Presentation
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JA EconomicsDemand – Chapter 3
http://www.youtube.com/watch?v=CouzZNjuyRM&feature=related
http://www.youtube.com/watch?v=kKAU856roF0&feature=related
PR
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FREE ENTERPRISE
Page 32
Influences of the Market Entrepreneurs bring new products to the
market
Interest in the new product
Economy evolved People traded with one another
Demand
What does it mean?
Economists usage.
Page 33, “How many hamburgers would you buy?”
TEST QUESTION
Change in Demand Does a change in price change demand?
Look at page 41
What could cause the demand for gas to shift?
7 Factors that Affect Demand Change in Income Prices or Availability of Substitutes Prices or Availability of Complementary
Goods Change in the Weather or Season Change in the Number of Buyers Change in Styles, Tastes, Habits Change in Expectations
TEST QUESTION
Prices or Availability of Complementary Goods Price of chips goes down due to sale…
What will consumer also buy? Shift to the right when the two goods
tend to be consumed or used together in relatively fixed or standardized proportions
Why it Matters Understanding how the producers think.
What good and services to produce?
How should they be produced?
Who will they be produced for?
Price Effect Demand
Consumers buy less of something at a higher price than a lower price
Supply Producers are willing and able to produce
more at a higher price
Graphing Supply
0 500 1000 1500 2000 2500 3000$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40
Supply of Tortillas Produced by Casa de Tortillas
Market Supply
More than one producer in a market
Marginal Costs differ
Higher prices provide an incentive
Price Elasticity of Supply Like demand there is elasticity in supply Depends on the response or ability of
producers
Changes in Supply Changes in marginal cost of production
Changes in the number of producers
Change in expectations
TEST QUESTION
Changes in Marginal Cost of Production Research
Worker suggestion for efficiency
Marginal cost of productions falls