What reading strategy do you find the most confusing to use or difficult to understand? Even if you do know which one would you like to see me model? Re-read word or sentences Mentally visualize confusing words Use context clues Relate text to life Read titles and headings Trace around sentences to find important parts

BellWork What reading strategy do you find the most confusing to use or difficult to understand? Even if you do know which one would you like to see me model? Explain and I will help shortly

QUestion What is one thing you would change about “school”. Don’t think just about Dearborn HS in general but schooling as a system. Describe an additional thing our schooling system does well.

BellWork If the price of their product/service goes up, will a business make more of that product or less? Explain

Unit 4: Supply Standard 1.3.1

The Law of Supply Law of Supply: Businesses will offer more of a good at a higher prices (want to make more $$) Price As price increases… Supply Quantity supplied increases Price As price falls… Supply Quantity supplied falls 8

h h The Higher the Price The more suppliers will make of it Law of Supply Definition: Price and Quantity supplied move in the same direction. Price Quantity Goes Supplied h h The Higher the Price The more suppliers will make of it

i i The Lower the Price. The Less suppliers will make of it Law of Supply Definition: Price and Quantity supplied move in the same direction. Price Quantity Goes Supplied i i The Lower the Price. The Less suppliers will make of it

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Supply Supply: the quantity of goods and services that producers are willing to offer at different prices Quantity Supplied: Amount of good or service that a producer is willing to sell at each price

Agenda Econ Voter Supply Activity Graphing Supply/Demand Objective: I can describe the law of supply using examples Language Objective: I can read and discuss the law of supply using examples HW: Voter Supply Activity Graphing Supply/Demand

Define the law of supply and law of demand Bellwork Define the law of supply and law of demand What economic system is about government control?

Market Supply Curve: a graph showing the various quantity supplied at all possible prices

Determinates of Supply Just like Demand, Supply also has Determinates. The Curve moves Right if Supply Increases and Left if Supply Decreases Businesses use this following info to make decisions about what to make

1. Cost of Production The cost of inputs needed to make a product. (Raw Materials & Labor) Costs $ go up = Supply Goes Down Costs $ go down = Supply Goes Up

2. NUMBER OF SELLERS IN THE INDUSTRY The Number of suppliers/sellers in a given Industry More Suppliers = More Supply Less Suppliers = Less Supply

3.Taxes/Government Regulation Government imposed taxes on Goods or Services can make the production of goods more expensive. More Taxes = Less Supply Less Taxes = More Supply

4. Technology Technology can help make goods faster and cheaper Better Technology = More Supply Worse Technology = Less Supply

Which direction does the Supply Curve Move? Situation: Due to the recent down turn of the Economy, a number of car manufacturers are no longer in business anymore. What effect will this have on the supply of Cars? What determinate are we using? NUMBER OF SELLERS What direction will the Supply Curve move?: LEFT

Which direction does the Supply Curve Move? Situation: The Government has just decided to lower the taxes on the purchase of all electric cars. What effect will this have on the supply of electric Cars? What determinate are we using? TAXES What direction will the Supply Curve move? RIGHT

Objective / HW Objective: I can describe and analyze the determinants of supply and how they shift a supply curve Language Objective: I can read and discuss how the determinants of supply shift a supply curve HW: Supply Headlines Graphing Supply

Explain what the 4 determinants of demand are… Do Now Explain what the 4 determinants of demand are… What is the law of supply as prices go up supply…

Supply and Demand Simulation Day 1

The Price System Standard 1.3.3

The Price System Price is the language of economics The interaction of supply and demand determines the equilibrium price This equilibrium price is the compromise we live by everyday http://www.criticalcommons.org/Members/fsustavros/cli ps/cse-1-4-stossel-2011-economics-of-voluntary-1/view

Market Equilibrium – Perfection!!!! Market Equilibrium is when quantity supplied and quantity demanded are equal – Perfection!!!! Supply curve and demand curve intersect

Where does Equilibrium Occur on this chart? At what price does equilibrium occur? How do we know again?

Supply-Demand Market Equilibrium $500 Price per Xbox 360 450 400 E 350 300 g 250 D 200 S 30 40 50 60 70 80 90 Quantity in Billions of Xbox 360 per Year

Shortage: “Not Enough!!” With shortages, price tends to rise until equilibrium is restored Things that might happen… - Black markets - Rationing - Violence

Surplus: “Having too much” With surpluses, prices tend to fall until equilibrium is restored Things that might happen… - Little re-sale value - Lack of consumer interest

Managing Prices Sometimes Governments set prices to protect producers and consumers Price Ceiling: Government action that establishes a maximum price for a certain good Price Floor: Government action that establishes a minimum level of prices. Anything below it illegal

Please Sketch

Price Floor Example An important example of a price floor is the minimum wage Minimum Wage: the lowest allowed by the law in a state or country A business cannot pay an employee lower than what the federal gov’t says (illegal)

Minimum Wage Current Events http://www.whitehouse.gov/raise-the- wage?utm_expid=24505866-22.orh-8EtwQu-dGtoBaX9aiA.0 http://www.myfoxdetroit.com/story/26445639/arrests-after- fast-food-wage-protesters-block-mack-avenue http://www.nytimes.com/video/us/politics/100000002676720/o bama-on-raising-the-minimum-wage.html https://www.youtube.com/watch?v=Z0xVojIYA-o Michigan's minimum wage is currently $8.50 and hour and due to go up http://time.com/4274938/minimum-wage-state- map/

Objective / HW Objective: I can identify & describe the conditions where equilibrium take place Language Objective: I can read and discuss equilibrium in relation to a demand/supply curve HW: Market Clearing Price Assignment Minimum Wage Pro-Con Article

Bellwork Describe the concept of equilibrium

We the Economy Supply and Dance Man!

Hw The Office Video Review for Supply Price Floor And Ceiling Assignment

Review Guide Law of Supply Definition / Examples Describe and apply the Determinants of Supply Identify and describe equilibrium What is a supply curve? Trace price and quantity supplied on the curve