MARKETS

KCCT

COACH BOOK

CHAPTER 1

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PLEASE SELECT A TEAM.

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WHAT IS A MARKET?

a MARKET exists whenever there are buyers and sellers exchanging goods and services

Markets can be physical—an actual place that people go to buy things

markets can be more digital—buying things over the telephone or on the internet

SUPPLY AND DEMANDin a market, prices are controlled

by SUPPLY AND DEMAND (when the supply of goods is limited, and the demand is high, the price goes UP. When the supply of goods is high and the demand goes down, the price goes DOWN.)

can you think of an example of supply and demand?

SUPPLY

The SUPPLY of goods is the amount of products available to be purchased

SUPPLY can also refer to the availability of the product to the seller also. ( the supplier may be able to deliver more of the product to the seller—it may not be available readily at the store, though)

DEMAND

The DEMAND for goods refers to how many people not only want the product, but can readily afford to buy it

Many people want a sports car, but very few people can afford one, so the DEMAND is LOW for sports cars

can you think of some good or service where the demand is low?

PRICE

The greater the demand for a product, the easier it is for a store to sell it

when there is a limited supply along with a high demand, there is a SHORTAGE

When there is a SHORTAGE, the price can go up

this is bad for the consumer

PRICE

the greater the supply of a product, the harder it is to sell, of there is more product than is demanded, there is a SURPLUS

When there is a SURPLUS, there is more than needed, so the price drops

this is good for the consumer

PRICE

when the supply and the demand balance, the price will stabilize

the seller will get a fair price for the product

the consumer will pay a fair price for the product

the law of supply and demand is essential to a free enterprise system

A MARKET EXISTS WHENEVER THERE ARE:

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1.sellers2.buyers3.buyers and sellers4.neither buyers nor

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FOR WHICH ITEM IS THERE LIKELY TO BE THE GREATEST DEMAND?

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1. a broken fan2. chocolate bar3. replacement radio tube

#3AZ4. expensive stereo system

FASTEST RESPONDERS (IN SECONDS)

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BOB MANUFACTURES WIDGETS. HIS OLD WIDGET (WIDGET 1.0) HAS JUST BEEN REPLACED BY A CHEAPER MODEL (WIDGET 2.0), WHICH IS NOW AVAILABLE IN STORES. HOW WILL THIS AFFECT THE PRICE OF WIDGET 1.0?

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1. it will increase2. it will decrease3. it will stay about the same4. it will both rise and fall

UNDER WHICH CIRCUMSTANCES WOULD THERE BE A SURPLUS?

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1. high demand, high supply2. high demand, low supply3. low demand, high supply4. low demand, low supply

RACING LEADER BOARD

EXCHANGING GOODS AND SERVICES

in the past, the primary way people bought and sold things was through BARTER

BARTER is the direct exchange of goods/services (without money)

can you think of an example of BARTERING?

EXCHANGING GOODS AND SERVICES

The problem with bartering, is that the goods/services being exchanged, didn’t always have equal values

Another problem is that one person may be offering a product/service for barter that the other person didn’t want

how would you solve this problem?

EXCHANGING GOODS AND SERVICESthese problems led to the

development of MONEYMONEY is used to trade for goods or

services for the agreed upon valueMONEY is more efficient than

BARTERING for other reasons too…can you imagine carrying enough chickens with you to buy everything you need?

BARTER IS A FORM OF:

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1. money2. goods3. services4. trade

TEAM MVP

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THE STANDARD MONETARY UNIT IN THE UNITED STATES IS:

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1. dollar2. quarter3. 100 dollar bill4. penny

PARTICIPANT SCORES

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WHICH OF THE FOLLOWING STATEMENTS IS TRUE?

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1. markets can be either physical or digital

2. only buyers are needed for a market to exist

3. only sellers are needed for a market to exist

4. it is a market only if buyers and sellers are exchanging services

SUPPLY AND DEMAND AFFECTS:

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1. size of markets2. types of services3. stock4. prices

TEAM SCORES

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THE PRETTY POLLY DOLL IS A NEW, VERY POPULAR DOLL. THERE ARE NOT ENOUGH DOLLS FOR THE PEOPLE THAT WANTS ONE. THIS IS CONSIDERED A…

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1. surplus2. shortage3. demand4. market

TEAM MVP

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AT LUNCH TODAY, MARY TRADED HER PICKLE FOR LOUISE’S CUPCAKE. THIS IS AN EXAMPLE OF…

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1. supply2. demand3. barter4. sale

WHAT PERCENTAGE OF YOUR CURRENT POINTS WOULD YOU LIKE TO WAGER ON THE NEXT QUESTION?1.0%

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PRICES GO DOWN WHEN:

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1. supply is high and demand is low

2. supply is high and demand is high

3. supply is low and demand is high

4. supply is low and demand is low

RACING LEADER BOARD