Chapter 31 MARKETING AND ECONOMICS 1Scarcity and Private Enterprise 2Observing the Law of Supply and Demand 3Types of Economic Competition 4Enhancing Economic Utility

Chapter 32 Focus Questions: Does the use of a Chinese language headline increase or decrease your interest in the advertisement? What is the key message Morgan Stanley is trying to communicate? Offer examples of how the growth of the economies in other countries around the world affects U.S. businesses and consumers. ©MORGAN STANLEY

Chapter 33 SCARCITY AND PRIVATE ENTERPRISE GOALS  Identify the basic economic problem.  Describe how America ’ s private enterprise economy works.

Chapter 34 The Importance of Economic Understanding  The basic economic problem  Who makes the decisions? Controlled economy—government Free economy—individuals Mixed economy—government and private enterprise

Chapter 35 America ’ s Private Enterprise Economy  Characteristics Consumers Producers Government  Economic forces

Chapter 36 OBSERVING THE LAW OF SUPPLY AND DEMAND GOALS  Explain micro/macro economics and the concept of consumer demand.  Identify factors that affect supply and its relationship to demand.

Chapter 37 Macroeconomics  Macroeconomics studies the economic behavior and relationships of an entire society.

Chapter 38 Microeconomics  Microeconomics is the study of relationships between individual customers and producers.

Chapter 39 Consumer Demand  Factors affecting demand  Analyzing demand curves Demand curve Law of demand Economic market

Chapter 310 Price $ ,000 Quantity 2,0003,0004,0005,0006,0007,000 Demand Curve for Movies

Chapter 311 Supplying the Product  Handling the competition  Analyzing supply curve Supply curve Law of supply

Chapter 312 Price $ ,000 Quantity 20,00030,00040,00050,00060,00070,00080,000 Supply Curve for Cell Phones

Chapter 313 Intersecting Supply and Demand  Supply  Demand  Market price

Chapter 314 Demand Curve for Notebook Computers Price $2,100 1,800 1,500 1, Quantity (in 000s)

Chapter 315 Supply Curve for Notebook Computers Price $2,100 1,800 1,500 1, Quantity (in 000s)

Chapter 316 Price $2,100 1,800 1,500 1, Quantity (in 000s) Market Price for Notebook Computers DemandSupply Market Price

Chapter 317 TYPES OF ECONOMIC COMPETITION GOALS  Define pure competition and monopoly.  Explain the characteristics of oligopolies and monopolistic competition.

Chapter 318 ENHANCING ECONOMIC UTILITY GOALS  Define four types of economic utility.  Explain how marketers use utility to increase customer satisfaction.

Chapter 319 Utility Means Satisfaction Economic utility  Form utility  Time utility  Place utility  Possession utility