Supply and Demand
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Transcript of Supply and Demand
Supply and Demand
KCCT Chapter 8
Please select a Team.
Globe tr
otters
Toxic waste
rs
Awesome A
’s
Pretty Purp
le ...
Rocksta
r M&M
s
Golden Cobras
17% 17% 17%17%17%17%1. Globe trotters
2. Toxic wasters
3. Awesome A’s
4. Pretty Purple Princesses
5. Rockstar M&Ms
6. Golden Cobras
Effects of Scarcity
• The basic economic problem in society is scarcity.
• SCARCITY means there isn’t enough of everything to give everybody everything they want
• it is the imbalance between unlimited wants and LIMITED RESOURCES
The effect of Scarcity
• The opposite of scarcity is SURPLUS
• Surplus exists when the supply of something is greater than the demand
• When there is a surplus of something, the cost goes down
• When there is a scarcity of something, the price goes up
Effect of scarcity• There can be a scarcity or surplus of
GOODS or SERVICES or RESOURCES• GOODS are actual products that people
buy and sell• SERVICES are work done by
professionals (the service is bought or sold)
• RESOURCES can be money, land, and labor
Which of the following is the MOST scarce?
can
dy bar
s
dia
mond
s
shoes
com
pact d
isks
25% 25%25%25%
1. candy bars
2. diamonds
3. shoes
4. compact disks
Response GridResponse Grid
Which of the following is a service?
25%
25%25%
25%
a new photocopier toner (ink) for t...
photocopier paper photocopier insta...
1. a new photocopier
2. toner (ink) for the photocopier
3. photocopier paper
4. photocopier installation
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Fastest Responders (in seconds)
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When there is scarcity, there is:
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25%
more than ... less than ... just the r... nothing th...
1. more than is needed
2. less than is needed
3. just the right amount as needed
4. nothing that is needed
Response GridResponse Grid
Which of the following is not a person who provides a service?
25%
25%
25%
25%1. plumber
2. hair stylist
3. farmer
4. bus driverResponse GridResponse Grid
Racing Leader Board
Goods and Services
• a person that purchases a good or service is known as a CONSUMER
• every time you buy something or hire someone to do something for you, you are a consumer!
• Consumers buy goods and services to satisfy economic wants and needs
Goods and Services
• NEEDS (NECESSITIES) are items or services which are necessary for survival
• WANTS (LUXURIES) are items that are nice to have, but are not necessary for survival
In order to be considered a consumer, you must:
25%
25%
25%
25% 1. manufacture something
2. sell something
3. purchase something
4. grow something
Response GridResponse Grid
Which of the following items is a luxury?
med
icin
e
pan
ts
wat
er
ice
crea
m
25% 25%25%25%1. medicine
2. pants
3. water
4. ice cream
Response GridResponse Grid
Which of the following is a need?
25%
25%25%
25%
a bed flip-flops a car asthma med...
1. a bed
2. flip-flops
3. a car
4. asthma medicine
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Participant Scores
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Opportunity Cost
• when you purchase a good or service from someone, the amount of money you pay is the cost
• However, the true cost of the item is greater than the money you paid for it—it’s also what you gave up to buy it
• whatever you give up to buy something is called your OPPORTUNITY COST
Opportunity Cost
• Every time you make a decision, there is an OPPORTUNITY COST.
• In economics, the goal is to use your RESOURCES as wisely as possible
You have $15 either to go to a movie with a friend or to buy a new CD. You decide to purchase the
CD. Which is the opportunity cost?
25%
25%
25%
25% 1. buying the CD
2. giving up the movie
3. $15
4. there is no opportunity costResponse GridResponse Grid
You decided to come to school today. Which of the following is
NOT your opportunity cost?
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25%25%
25%
doing a “turning ... sleeping in
doing what you wa... watching TV
1. doing a “turning point” lesson
2. sleeping in
3. doing what you want at home
4. watching TV Response GridResponse Grid
Racing Leader Board
A store’s warehouse contains 500 televisions, 1000 radios, 500 DVD
players, and 20 theater systems. There is the greatest scarcity of which item?
25%
25%
25%
25% 1. televisions
2. radios
3. DVD players
4. theater systems Response GridResponse Grid
Scarcity requires people to make:
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25%25%
25%
purchases choices goods services
1. purchases
2. choices
3. goods
4. services
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Team MVP
Points Team Participant
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Which of the following is a product?
25%
25%25%
25%
marketing consult... personal computer
legal representat... medical care
1. marketing consultation
2. personal computer
3. legal representation
4. medical care
Response GridResponse Grid
Which of the following people provides an economic service
that meets a need?
25%
25%
25%
25% 1. movie theater owner
2. water treatment plant operator
3. passenger airplane manufacturer
4. internet service provider
Response GridResponse Grid
What percentage of your current points would you like to wager on the
next question?1. 0%
2. 25%
3. 50%
4. 75%
5. 100%
Response GridResponse Grid
Joe went to the casino and gambled his entire paycheck, $342.17, away instead of buying
food for his family. What was the opportunity cost of his decision?
25%
25%
25%
25%1. being able to buy food for his family
2. being able to gamble
3. $342.17
4. there was no opportunity costResponse GridResponse Grid
Racing Leader Board