Bell Ringer Read page 231 and answer #1 and #2 on your bell ringer sheet.

Bell Ringer Answer 1.A popular athlete will increate sales. The athlete gains exposure and the honor associated with appearing on the Wheaties box. 2.The athlete may do something to fall out of the favor with the public, and the cereal with the athlete’s image may not sell.

Wheaties Gone Wrong

Agenda Bell Ringer / Announcements – (5 minutes) Complete Chapter 9.1 Vocabulary (page 232) in Interactive Notebook – (10 minutes) Chapter 9.1 Lecture and Discussion – (30 minutes) Chapter 9.1 Activity (Charting Supply and Demand) – (25 minutes)

Table of Contents TopicPage # Digital Media Trends4 Chapter 8.1 Vocabulary and Notes5 Recreational Sports6 Chapter 8.2 Vocabulary and Notes7 Chapter 8 Assessment8 Chapter 8.3 and 8.4 Vocabulary9 Virtual Business – Lesson 1 Questions10 Virtual Business – Lesson 1 Vocabulary11 Supply and Demand12 Chapter 9.1 Vocabulary and Notes13

12 13 Chapter 9.1 Vocabulary 1.Law of Demand 2.Law of Supply 3.Scarcity 4.Equilibrium 5.Price Fixing 6.Bait and Switch 7.Price Discrimination Supply and Demand PRICEDEMANDSUPPLYSURPLUSDEFICIT Equilibrium Point is at ______________supply/demand amount and __________ price.

Introduction Vocabulary Demand – the relationship between the quantity of a produce that consumers are willing and able to purchase and the price. Producers – businesses that use resources to develop products and services. Supply – the relationship between the quantity of a product that the producers are willing and able to provide and the price.

Price – Demand Relationships Finding a balance between what producers are willing to produce and what customers are willing to buy is one of the major challenge of marketers. Law of Demand -> Price goes up, demand goes down and when price goes down, demand goes up.

Price – Supply Relationships Producers are willing to invest their resources into a product or service, if they have a good chance of making a profit. Law of Supply – when the price goes up the supply produced goes up, and then the price goes down the supply produced goes down.

Balancing It Out Marketers help to balance the impact of the laws of supply and demand by providing consumers information about new products and by making the products conveniently available. Producers must pay attention to what is selling at profitable prices and quantities and what is not and adjust production accordingly.

Scarcity Consumers have limited money to spend on sports and entertainment products and events. Producers also have limited resources to use in the production of products and events. Scarcity – the lack of resources.

Equilibrium – the point where the supply and demand curves intersect – indicates the best quantity and price for goods and services

Government Influence on Pricing The United States has a free-enterprise system, which is based upon decisions made by consumers and businesses. – The government plays a limited roles, but still has an influence on prices charged for merchandise directly and indirectly through antitrust laws, taxation, and various consumer protection laws.

Benefits of Competition Antitrust laws serve to encourage competition and to avoid monopolies (where one business controls the entire market). Competition allows the laws of supply and demand to set prices. Competition also encourages businesses to develop new products and services.

Taxation Taxation is used by the government to encourage or discourage sales. – Increasing taxes on alcoholic beverages or cigarettes cause prices for the items to rise.

Illegal Pricing Price Fixing – occurs when related businesses conspire to charge high prices. – Illegal in the United States. Illegal in the United States.

Illegal Pricing Bait and Switch – occurs when a product that is advertised at a great price is ‘out of stock’ when customers want to purchase it, and the salesperson then tries to sell customers a higher-priced alternative. – Down Right Nasty Tactic Down Right Nasty Tactic

Illegal Pricing Price Discrimination – occurs when one individual, group, or business is charged a higher price than others purchasing the same product or service. – There must be a valid reason for price differences, such as: location, volume of sales, market conditions, etc. – Examples Examples

Chapter 9.1 Activity Record the chart in your interactive notebook. Determine if there is a surplus or deficit by writing the amount in the proper blank provided below. Chart the following points in your Interactive Notebook. (You will have to draw the graph) Determine the equilibrium quantity produced and price.

Class Ring Supply and Demand PRICEDEMANDSUPPLYSURPLUSDEFICIT