“The Market” Learning Targets Knowledge Understand the definitions for the different types of goods and services. Skill Translate price and quantity data into supply and demand graphs. Allow students time to copy this onto their note sheets.

Two Types of Goods Goods (and services) fall into one of two categories. 1) Normal Goods 2) Inferior Goods Definition Items that people tend to buy more of when their incomes increase. This is true of most goods and services. Examples Allow students time to write down their own examples. (There is a blank letter “E” and a blank letter “F” on their note sheet for them to write down two of their own ideas.) Ask some students to share what they came up with. A) New Cars B) Coca-Cola or Pepsi C) Televisions D) Clothes What examples can you think of?

Two Types of Goods Goods (and services) fall into one of two categories. 1) Normal Goods 2) Inferior Goods Definition Items that people purchase more of when their incomes decrease. These items tend to be low-cost options for saving money. Examples Allow students time to write down their own examples. (There is a blank letter “E” and a blank letter “F” on their note sheet for them to write down two of their own ideas.) Ask some students to share what they came up with. What examples can you think of? A) Ramen Noodles B) Frozen Dinners C) Bus Transportation D) Used Clothes

What examples can you think of? Related Goods Sometimes goods (or services) are related to each other in one of two special ways. 1) Substitute Goods 2) Complementary Goods Definition Items that may replace each other when used or consumed. Examples A) Butter . . . . . . . . . . Margarine B) McDonald’s . . . . . Burger King Allow students time to write down their own examples. (There is a blank letter “C” on their note sheet for them to write down one of their own ideas.) Ask some students to share what they came up with. What examples can you think of?

What examples can you think of? Related Goods Sometimes goods (or services) are related to each other in one of two special ways. 1) Substitute Goods 2) Complementary Goods Definition Items that are almost always consumed or used together. Examples A) Hot Dogs . . . . . Hot Dog Buns B) Toothbrush . . . . Toothpaste Allow students time to write down their own examples. (There is a blank letter “C” on their note sheet for them to write down one of their own ideas.) Ask some students to share what they came up with. What examples can you think of?

Economic Time Frames There are two ambiguous time frames that economists use to analyze a market. 1) Short Run 2) Long Run Definition An undefined period of time that is NOT long enough to allow consumers or producers enough time to adjust to all changes in an economic situation. Students do not need to write down the example. Example Suppose Coca-Cola Vanilla becomes extremely popular. Coca-Cola cannot increase its output immediately to accommodate demand because it takes time to adjust to the new demand.

Economic Time Frames There are two ambiguous time frames that economists use to analyze a market. 1) Short Run 2) Long Run Definition An undefined period of time that is long enough for people to adjust to all changes in an economic situation. Example Students do not need to write down the example. On the other hand, Coca-Cola Vanilla can increase its production in the long run by opening new factories and by locating additional raw materials.

Identifying Markets When analyzing a market, it is always important to know which market you are talking about! Example 1 Which market is this? ? Have students write down which market they think is depicted in the picture. Example 2

Identifying Markets When analyzing a market, it is always important to know which market you are talking about! Example 1 Oranges? Orange Juice? Navel Oranges? Which market is this? Note the several different possible markets that could be depicted by this picture. Example 2

Identifying Markets When analyzing a market, it is always important to know which market you are talking about! Example 1 Example 2 Have students write down which market they think is depicted in the picture. Which market is this? ?

Identifying Markets When analyzing a market, it is always important to know which market you are talking about! Example 1 Example 2 Note the several different possible markets that could be depicted by this picture. Shoes? Women’s Shoes? High Heels? Which market is this?

Each graph you draw will contain each of the following items. A Market Graph Each graph you draw will contain each of the following items. 1) Title of the market Market for High Heels Allow students to write this down and to make the proper additions to the graph.

Each graph you draw will contain each of the following items. A Market Graph Each graph you draw will contain each of the following items. 1) Title of the market Market for High Heels $70 $60 2) Price range on the vertical axis (y-axis) $50 $40 Price $30 $20 Allow students to write this down and to make the proper additions to the graph. $10 $0

Each graph you draw will contain each of the following items. A Market Graph Each graph you draw will contain each of the following items. 1) Title of the market Market for High Heels $70 $60 2) Price range on the vertical axis (y-axis) $50 $40 Price $30 3) Quantity on the horizontal axis (x-axis) $20 Allow students to write this down and to make the proper additions to the graph. $10 $0 25 50 75 100 125 150 175 Quantity

Creating a Graph This unit will require us to draw several market graphs. Follow these steps. Market for High Heels $70 $60 $50 $40 Price $30 $20 $10 $0 25 50 75 100 125 150 175 Quantity

Creating a Graph 1) Plot data points using provided information This unit will require us to draw several market graphs. Follow these steps. 1) Plot data points using provided information Market for High Heels $70 $60 $50 $40 Price See Data $30 $20 $10 $0 25 50 75 100 125 150 175 Quantity

Creating a Graph 1) Plot data points using provided information This unit will require us to draw several market graphs. Follow these steps. 1) Plot data points using provided information Market for High Heels $70 $60 $50 $40 Price ($) Quantity Price $20 50 $30 $30 75 $20 $40 100 $10 $50 125 $0 25 50 75 100 125 150 175 Plot Data Quantity

Creating a Graph 1) Plot data points using provided information This unit will require us to draw several market graphs. Follow these steps. 1) Plot data points using provided information Market for High Heels $70 $60 $50 $40 Price ($) Quantity Price $20 50 $30 $30 75 $20 $40 100 Students should plot these points on the graph on their note sheets. $10 $50 125 $0 25 50 75 100 125 150 175 Quantity

Creating a Graph 1) Plot data points using provided information This unit will require us to draw several market graphs. Follow these steps. 1) Plot data points using provided information Market for High Heels $70 $60 $50 $40 Price ($) Quantity Price $20 50 $30 $30 75 $20 $40 100 Students should now have a finished market graph on their note sheets. (Graph labels will come in later lessons.) $10 $50 125 $0 2) Connect data points with a line 25 50 75 100 125 150 175 Quantity

Market Graph Puzzle DIRECTIONS 1) Cut this sheet in half on the dotted line. 2) Cut out the items from the bottom portion on the dotted lines. 3) Glue these items into the empty box on the top portion. Be sure to glue them in the proper locations for creating a market graph. These are the directions for the Class Activity that is included in the download.

“The Market” Learning Targets Knowledge Understand the definitions for the different types of goods and services. Skill Translate price and quantity data into supply and demand graphs.