Supply and Demand KCCT Chapter 8

Please select a Team. Globe trotters Toxic wasters Awesome A’s Pretty Purple Princesses Rockstar M&Ms 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? candy bars diamonds shoes compact disks Response Grid

Which of the following is a service? a new photocopier toner (ink) for the photocopier photocopier paper photocopier installation Response Grid

Fastest Responders (in seconds) Participant 1 Participant 2 Participant 3 Participant 4 Participant 5

When there is scarcity, there is: more than is needed less than is needed just the right amount as needed nothing that is needed Response Grid

Which of the following is not a person who provides a service? plumber hair stylist farmer bus driver Response Grid

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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: manufacture something sell something purchase something grow something Response Grid

Which of the following items is a luxury? medicine pants water ice cream Response Grid

Which of the following is a need? a bed flip-flops a car asthma medicine Response Grid

Participant Scores Participant 1 Participant 2 Participant 3 Participant 1 Participant 2 Participant 3 Participant 4 Participant 5

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 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? buying the CD giving up the movie $15 there is no opportunity cost Response Grid

You decided to come to school today You decided to come to school today. Which of the following is NOT your opportunity cost? doing a “turning point” lesson sleeping in doing what you want at home watching TV Response Grid

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A store’s warehouse contains 500 televisions, 1000 radios, 500 DVD players, and 20 theater systems. There is the greatest scarcity of which item? televisions radios DVD players theater systems Response Grid

Scarcity requires people to make: purchases choices goods services Response Grid

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Which of the following is a product? marketing consultation personal computer legal representation medical care Response Grid

Which of the following people provides an economic service that meets a need? movie theater owner water treatment plant operator passenger airplane manufacturer internet service provider Response Grid

What percentage of your current points would you like to wager on the next question? 0% 25% 50% 75% 100% Response Grid

being able to buy food for his family being able to gamble $342.17 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? being able to buy food for his family being able to gamble $342.17 there was no opportunity cost Response Grid

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