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Econ 1-4B Indiana Jones (Supply & Demand)

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Econ 1-4B Indiana Jones (Supply & Demand)

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E.2.1 Define supply and demand, and explain the causes of the Law of Supply and the Law of Demand. (E)
E.2.2 Provide examples of how consumers ultimately determine what is produced in a market economy.
E.2.3 Provide examples of how supply and demand determine equilibrium price and quantity.
E.2.4 Identify factors that cause changes in market supply and demand and how these changes affect price and quantity in a competitive market. (E)
E.2.5 Describe how price elasticity of supply and price elasticity of demand send signals to buyers and sellers. (E)
E.2.6 Analyze the earnings of workers in different industries using factors such as product value, worker productivity, and market structure. (E)

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Lance Hiles
Lance Hiles
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Econ 1-4B Indiana Jones (Supply & Demand)
 

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Econ 1-4B Indiana Jones (Supply & Demand)Version en ligne

E.2.1 Define supply and demand, and explain the causes of the Law of Supply and the Law of Demand. (E) E.2.2 Provide examples of how consumers ultimately determine what is produced in a market economy. E.2.3 Provide examples of how supply and demand determine equilibrium price and quantity. E.2.4 Identify factors that cause changes in market supply and demand and how these changes affect price and quantity in a competitive market. (E) E.2.5 Describe how price elasticity of supply and price elasticity of demand send signals to buyers and sellers. (E) E.2.6 Analyze the earnings of workers in different industries using factors such as product value, worker productivity, and market structure. (E)

par Lance Hiles
1

Buyers want a low price. Sellers want a high price. Since it takes energy & money to supply goods, sellers will stop supplying goods if the price is too low. When the price is too low, sellers have no ____ to supply goods in a market.

2

Markets involve the ____ behavior of multiple sellers & multiple buyers, so they are simple to understand once you understand the rationale of 1 seller & 1 buyer.

3

On the graph for supply & demand, the two curves slope in opposite directions, forming an 'X'. The ____ ____ slopes upward, from left to right.

  
  
4

When quantity demanded is larger than quantity supplied, there is a shortage of goods. _____ will compete with each other for the limited goods & bid up prices. This offers more incentive to sellers, who will now increase supply & fix the shortage.

5

On the graph for supply & demand, the two curves slope in opposite directions, forming an 'X'. The demand curve slopes downward, from left to right, & it shows us the ____ of ____ , or how the quantity of a good & its price affect each other.

  
  
6

On the graph for supply & demand, the two curves slope in opposite directions, forming an 'X'. Demand curve slopes downward from left to right, so when demand for goods ____ , the curve shifts to the ____ , or away from '0'.

  
  
7

The demand curve slopes downward from left to right, & it shows us that when the price of a good drops, the quantity demanded increases. The reason being: When the price is ____ for a product, buyers are now able & willing to buy more.

8

The demand curve slopes downward from left to right, & when it shifts to the left, this creates a surplus between quantity demanded & quantity supplied. This causes prices to drop because now ____ compete with each other to get rid of the surplus.

9

The demand curve slopes downward from left to right, showing the relationship between price and quantity demanded. Thus, if prices are too high, consumers will buy less, especially if there are ____ products to buy instead.

10

The demand curve slopes downward from left to right, & when it shifts to the left (closer to 0), it shows that consumers are buying less at all possible price. Thus, the equilibrium shifts left as well, showing a decrease in both ____ & ____ .

  
  
11

The demand curve slopes downward from left to right & shows us how price & quantity demanded relate to each other. We see that, consumers end up buying fewer goods (quantity demanded), if prices are ____ ____ .

  
  
12

Energy Drink Market: when the price of Monster drops, this affects the demand for Red Bull. Customers that were buying Red Bull, now buy Monster to save money. This ____ demand for Red Bull, moving its demand curve closer to 0, or to the ____ .

  
  
13

On the graph for supply & demand, the two curves slope in opposite directions, forming an 'X'. To have supply, sellers need incentive (money) to supply goods. To have ____ , buyers need to be able & willing to buy goods.

14

On the graph for supply & demand, the two curves slope in opposite directions, forming an 'X', the equilibrium between supply & demand, where sellers & buyers are happy. The graph also predicts what will happen if there is a ____ in the ____ .

  
  
15

When Indiana Jones negotiates with a gangster for the exchange of diamonds & ashes, this is an example of buying & selling. An example of _____ is when you have multiple sellers & buyers trying to exchange diamonds for ashes.

16

When sellers & buyers are both happy, the supply & demand curves intersect at the ____ . This happens when there is no surplus or shortage, because sellers are supplying the same amount of product that buyers are demanding.

17

Buyers want to pay the ____ ____ , & sellers want to make as much profit as they can. Buyers don't have to buy, but sellers don't have to sell. Sellers can raise the price & see if the buyer really wants the product.

  
  
18

On the graph for supply & demand, the two curves slope in opposite directions, forming an 'X', the equilibrium where sellers & buyers are happy. But if price goes above equilibrium, sellers supply more & buyers demand less, creating a ____ .

19

We see supply & demand at work when a seller & a buyer come together in voluntary exchange. Voluntarily, they need to ____ a price that keeps them both happy.

20

On the graph for supply & demand, the two curves slope in opposite directions, forming an 'X', the equilibrium where sellers & buyers are happy. But if price goes below equilibrium, buyers demand more & sellers supply less, creating a ____ .

 
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