and the Installment Plan Advertising and the Installment Plan

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Supply and Demand

1920s Consumerism Clip

Prices Then and Now - TV TV 1947: $445 (adjusted for inflation, $4,027) 12-inch black-and-white  2007: $1,500 for a 42-inch plasma high-definition TV at Best Buy

Coca Cola an of Coke 1947: 5 cents (adjusted for inflation, 45 cents) 6.5 ounces 2007: 99 cents 12 ounce can in Washington, D.C.  Fun Fact: In 1985, Coca-Cola was the first soft drink to be consumed in space aboard the Space Shuttle Challenger. Since its creation in 1886, Coca-Cola has bottled more than ten billion gallons of soda. The company had a hiccup when it reformulated the soft drink in 1985; New Coke was heavily criticized, and the consumer uproar forced the company to reembrace Classic Coke. Still the company's mainstay, Coca-Cola Classic now shares the shelves with a multitude of Coke varieties -- from Vanilla Coke and Coke with 

Converse Shoes huck Taylor Converse All Star Sneakers  1947: about $3 (adjusted for inflation, about $27) 2007: $42 Fun Fact: In 1935, Chuck Taylor invented what we know today as a basketball -- he created a leather ball free of stitches to improve bounce. Charles "Chuck" Taylor was a basketball player for the original Celtics before becoming a salesman of the Converse sneaker and contributing to its redesign. The shoe today has a design that remains true to its canvas-and-rubber roots, and more than 750 million pairs of the Chuck Taylor All Star sneakers have been sold in 144 countries.

Refrigerator efrigerator 1947: $200 (adjusted for inflation, $1,810)  2007: $1,800 to $3,600 Fun Fact: The modern refrigerator first hit the market in 1925. By 1969, you could get ice and water from the door of your refrigerator. In 1947, the two-door refrigerator-freezer combination was introduced to consumers, with temperatures ranging from 0 to 38 degrees Fahrenheit. A cooler and a freezer in one? What a concept! Today's GE Profile (shown at far right) is able to create a range of microclimates to better preserve food. Nowadays, most every kitchen has a fridge with features that dispense water, turbo cool and reduce freezer burn. 

Music Players CDP101 - $1000 in 1982 ($2500 when adjusted for inflation) Ipod Nano - $200

Buying on the Margin Clip

Buy Low, Sell High Sell $3.00 $3.00 Profit $1.00 $2.00 Profit $2.80 Profit $1.00 $1.00 Profit $0.80 Buy $0.20 Buy $0.20 Buy the stock when it has a low value and sell the stock when it’s value Increases.

Sell High, Buy Low $200.00 Sell Profit $50.00 $150.00 Profit $50.00 $100.00 Sell $200.00, Buy $50.00 Profit $50.00 $50.00 Profit $150.00 Buy You must buy back the sold stocks within 72 hours A good method when you think the stock will decrease in value

It All Depends on the Market When worldwide prices for Canadian exports are high, the economy booms When global prices decrease, so does the Canadian economy What propelled the Canadian dollar in the 1920s?

So – what could spell problems for the Canadian economy if: We are affected by the law of scarcity We are buying consumer goods on credit We are ‘playing the market’ by buying on the margin Our economy is closely tied with the USA

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The Law of Scarcity