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Transcript

  • 1. Economics Supply and Demand Principles of Marketing B
  • 2. Warm-up
    • In a free enterprise system, who decides which products will be produced and which companies will stay in business? Explain.
    • Book check and note check
  • 3. Agenda
    • Warm-up
    • Hand back and review test
    • 3.2 Role of the Consumer
  • 4. Economics Overview
    • Free Enterprise System
      • Freedom of ownership
      • Competition
        • Price verses non price competition
        • Monopolies
      • Risk
      • Profit
        • Economic Cost verses economic benefit
  • 5. Economics Overview
    • Government and Consumer Functions
      • Role of the Government
        • 1. Provider of Services
        • 2. Supporter of Business
        • 3. Regulator
        • 4. Competitor
      • Role of the Consumer
  • 6. The Role of the Consumer
    • Consumer has two major roles
      • 1. Decides which products and businesses will survive
      • 2. Determines prices
  • 7. Role of the Consumer
    • 1. Decides which products and businesses will survive
      • Voting with your purchases
  • 8. Role of the Consumer
    • 2. Determines prices
      • Supply and demand determine prices
      • Price verses Market Price
  • 9. Determining Prices
    • What is supply?
      • Amount of goods producers are wiling to make and sell
        • Law of supply
          • When prices are high, supply will rise
          • When prices fall, supply will fall
  • 10. Law of Supply
  • 11. Determining Prices
    • What is demand?
      • Consumers willingness and ability to buy products
        • Law of demand
          • When prices fall demand will rise
          • When prices rise demand will fall
  • 12. Law of Demand
  • 13. Determining Prices
    • Think-Pair-Share
    • What is a surplus?
    • Predict what happens to supply and demand during a surplus.
      • When supply exceeds demand
        • Example: produce
  • 14. Determining Prices
    • Think-pair-share
    • What is a shortage?
    • Predict what happens to supply and demand during a shortage.
      • When demand exceeds supply
  • 15. Determining prices
    • Think-Pair-Share
    • What is equilibrium?
    • Predict what happens to supply and demand during a equilibrium.
      • When demand equals supply
        • Everyone wins
          • Consumers get a fair price
          • Retailers have a steady flow of business
  • 16. Equilibrium
  • 17. Exit Slip
    • 1. Explain the difference between price and market price.
    • 2. How does supply and demand interact to determine price in our free enterprise system?
    • 3. You are the producer of a new game for PS3. There is a high demand for the new game. Predict what will happen to price if the demand is high and the supply is low.
    • 4. Write down one thing we discussed today that you didn’t understand well.
    • Visit msmccoyprinciples.edublogs.org for PowerPoint
  • 18. References:
    • http://www.4thringroad.com/wp-content/uploads/2009/06/gasoline-supply-demand.jpg
    • http://www.investopedia.com/university/economics/economics3.asp