1. Review.... Graph it! If the price of ipods increases, what will happen to consumer demand for ipods? The Green Bay Packers win the Superbowl. What will happen to demand for their apparel? WHY? (in other words – what shifter?)

2. Review... Graph it! A drought hits the Midwest. What will happen to supply of commodities in the US? WHY?

3. Equilibrium Price of a good/service when supply and demand are equal!

5. Create Demand/Supply Curve: PRICE: CONSUMERS BUY: $50 10 40 20 30 30 20 40 10 50 PRICE: PRODUCERS SELL: $50 50 40 40 30 30 20 20 10 10

6. Excess Supply Happens when a price is set too high. Type of inefficiency More produced than what the consumers want!

8. Surplus Supply greater than demand Caused by Excess Supply

10. Excess Demand Happens when a price is set too low. Type of inefficiency Not enough goods/services produced to satisfy consumer demand!

12. Shortage Situation where a good or service is unavailable OR Demand is greater than supply

15. Price Ceiling Maximum price that can be charged for a good or service.

16. Example: Rent Control Maximum price on what landlords can charge Where does this happen? If set below equilibrium, consumers will want more than producers will offer. This results in _______________?

17. Price Floor Minimum price that can be charged for a good or service.

18. Example: Minimum Wage Minimum price employers can pay employees What is Idaho’s minimum wage? Is this a positive thing for workers? http://www.dol.gov/whd/minw age/america.htm http://www.dol.gov/whd/minw age/america.htm

19. http://themattwalshblog.com/2014/01/15/this-is-why-we- need-a-minimum-wage-hike/ http://themattwalshblog.com/2014/01/15/this-is-why-we- need-a-minimum-wage-hike/ http://www.youtube.com/watch?v=RP0j3Lnlazs&list=PL1oDmc s0xTD9Aig5cP8_R1gzq-mQHgcAH&index=6 http://www.youtube.com/watch?v=RP0j3Lnlazs&list=PL1oDmc s0xTD9Aig5cP8_R1gzq-mQHgcAH&index=6