Scarcity. English Auction  Let’s rearrange the seats by using the ‘English auction’, it means that ‘the person offers the highest bid is awarded’. 

Slides:

Advertisements

Similar presentations

FALL 2013 Government Intervention in Supply and Demand.

Advertisements

CHAPTER 6: SECTION 1 Supply and Demand Together

Scarcity Choice Opportunity Cost Unlimited Wants Limited Resources ScarcityChoice Opportunity Cost.

© 2015 Pearson Education Canada Inc.Ch © 2015 Pearson Education Canada Inc.Ch Markets connect competition between buyers, competition between.

Shortage, Surplus & Equilibrium

Understand the role of business in the global economy.

Consumers, Producers, and the Efficiency of Markets Outline:  Positive economics: Allocation of scarce resources using forces of demand and supply  Normative.

Chapter 2 - Scarcity and the World of Trade-Offs

4 Prepared by: Fernando Quijano and Yvonn Quijano © 2004 Prentice Hall Business PublishingPrinciples of Economics, 7/eKarl Case, Ray Fair Demand and Supply.

Louisiana’s Economy Resources and Rewards.

Economic Decisions and Systems

Understand the role of business in the global economy.

What is Economics Basic Economics. Section 1: The Fundamental Economic Problem Economics The system that society uses to produce and distribute goods.

Economics Basics Demand and Supply.

Module 12: Indifference Curves and Budget Constraints

 Quantities of a particular good or service that people are willing and able to buy at different possible prices.

Economic Systems Lesson 6. THREE BASIC ECONOMIC QUESTIONS.

Scarcity and Opportunity Costs CHAPTER 2 © 2016 CENGAGE LEARNING. ALL RIGHTS RESERVED. MAY NOT BE COPIED, SCANNED, OR DUPLICATED, IN WHOLE OR IN PART,

Chapter 21.3 Markets and Prices. Supply and Demand at Work Markets bring buyers and sellers together. The forces of supply and demand work together in.

Price: Supply and Demand Together 9B Social – Economics.

Chapter 3: Competitive Dynamics How Competitive Markets Operate Market Equilibrium:  The stable point at which demand and supply curves intersect PRICE.

Economics: The study of scarce resources

Lecture 1 Basic Economic Analysis. The Economic Framework For our purposes two basic sets of agents: –Consumers –Firms Both consumers and firms live within.

Essential Standard 1.00 Understand the role of business in the global economy. 1.

Ch. 1 Economic Decisions and Systems. Ch. 1-1 Satisfying Wants and Needs  Needs- Things that are required in order to live  Wants- Things that add comfort.

Economics concepts(1): wants : want is desire; demand is a desire supported by the ability($$$$$) to satisfy the desire: unlimited wants : for what.

Objectives:  Use the utility-maximizing model to explain how consumers choose goods and services.  Use the concept of utility to explain how the law.

Understand the role of business in the global economy. 1 ESSENTIAL STANDARD 1.00.

Review. Supply and Demand The law of demand holds that other things equal, as the price of a good or service rises, its quantity demanded falls.

Chapter 4: Demand and Supply Applications. The Price System: Rationing and Allocating Resources.

PRICE AND QUANTITY CONTROLS Mr. Bordelon AP Economics.

SCARCITY & DECISION MAKING Notes. THE BASIC ECONOMIC PROBLEM  Scarcity  Not having enough resources to satisfy every need  Requires Economic Decision-Making.

Economics 101. Why Societies Have Economics Trade = the exchange of goods and services Economics = the study of the production, consumption and distribution.

Government Intervention in the Markets Economic Institutions: Changes Needed to Ensure Economic Prosperity.

Essential Standard 1.00 Understand the role of business in the global economy. 1.

Introduction to Business © Thomson South-Western ChapterChapter Economic Decisions and Systems Satisfying Needs and Wants Economic Choices.

Economics Vocabulary. What is Economics? The study of production (making of), distribution (selling of), and consumption of (using of) goods and services.

SSEMI2 THE STUDENT WILL EXPLAIN HOW THE LAW OF DEMAND, THE LAW OF SUPPLY, PRICES, AND PROFITS WORK TO DETERMINE PRODUCTION AND DISTRIBUTION IN A MARKET.

Economic Resources. Three Questions of Economics 1. What goods shall we produce? – Where do decisions reside? Consumers? Government? Military? Private?

Intro to Business Unit 1 Chapter 1. Need things that are a must to survive Ex: Water Want things that make life more comfortable or enjoyable Ex: Chocolate.

Chapter 6 Equilibrium. The Role of Prices In the Chips Activity.

Understand the role of business in the global economy. 1 ESSENTIAL STANDARD 1.00.

Essential Standard 1.00 Understand the role of business in the global economy. 1.

Objective 5.01H.  The amount of money that is paid for a good, service, or resource  In the U.S., it’s expressed in dollars and cents.  Indicates the.

Potential Solutions Most economics would suggest sealed-bid auction.

Opportunity Cost.

Economic Decisions and Systems

1 Economic Decisions and Systems 1-1 Satisfying Needs and Wants

Scarcity Choices Tradeoffs and Opportunity Cost

Economic Decisions and Systems

Economics Chapter 1.

Economic Decisions and Systems

1 Economic Decisions and Systems 1-1 Satisfying Needs and Wants

1 Economic Decisions and Systems 1-1 Satisfying Needs and Wants

1 Economic Decisions and Systems 1-1 Satisfying Needs and Wants

Principles of Business, Marketing and Finance

Economics & You.

Putting it all together

Price Ceiling S Price PE D QE Quantity

Economic Decisions and Systems

Economic Concepts STANDARD CE.11a.

Unit 7a: Economics Vocabulary.

1 Economic Decisions and Systems 1-1 Satisfying Needs and Wants

1 Economic Decisions and Systems 1-1 Satisfying Needs and Wants

MARKET-CLEARING PRICE

ECONOMIC TERMINOLOGIES

1 Economic Decisions and Systems 1-1 Satisfying Needs and Wants

Presentation transcript:

Scarcity

English Auction  Let’s rearrange the seats by using the ‘English auction’, it means that ‘the person offers the highest bid is awarded’.  If your offer price is the highest for a seat, you will get it and sit there for the rest of the economics classes afterward.

Game Rules  The basic price for each seat is $0.5. The minimum-offering price is $0.5 for every bid.  During the game, every student can make a bid. Those who offers the highest price for a seat can get it.  Whenever you make a bid, please raise your paper plate.  Once a student makes a successful bid, he or she should pay for the price as stated.

Game Rules  Each student can bid for more than one seat, no upper limit is set.  Meanwhile, students can transfer their seat(s) to their classmates.  At the end of the game, those who cannot get a seat will be arranged to the ‘Settlement Area’.

Scarcity  Scarcity A situation in which the amount of resources is insufficient to satisfy all our wants.

Discussion  Can you think of any way to replace the ‘English Auction’ to distribute the seats? First come first serve Teacher assigned Others…????  What are the advantages and disadvantages of each of the above method?

Discussion  In the auction, did you want to bid for more than one seats?  What did you give up when you bid for your most favorite seat?

Opportunity cost  Opportunity cost The highest-valued option forgone. Whenever we choose one among alternatives, opportunity cost exists.

Opportunity cost Preferences priority in Jordon: 1. Go to Computer Center for study 2. Karaoke with classmates 3. See a movie with friends 4. Hiking with families

Opportunity cost  Because of scarcity, we need to make choices. In the process of choosing, we have opportunity cost. So, scarcity, choice & opportunity cost exist together. ScarcityChoice Opportunity Cost

Discussion  What would happen if the highest price were set below the market price (price ceiling)?

Price Ceiling  The maximum price set by the government when she attempts to control the price of a certain good or service from rising too high for most consumers.

Price Ceiling P S P 1 —Market Price P 2 –Price Ceiling Q 1 —Market Supply P 1 Q 2 –Market Demand P 2 Q 1 to Q 2 —Excess DD D Q 1 Q 2 Q

Discussion  If the seats have no owner, could they be distributed by auction? Why?

Property Right  Define the rights & constraints between human

Discussion  Is there any other ways to allocate the seats? “First-come-first-served’? Or others?