1. Date: November 18, 2015 Topic: The Role of Prices. Aim: How do prices play a role in the free market? Do Now: Read the handout.

2. How big is the surplus of workers when the minimum wage is $5.15 an hour? 4 million workers. NOW LOOK, NOW WATCH! APPLICATION!

3. MLB Prime Birch C271MLB Prime Birch C271 is $129.99 on the Louisville Slugger website. The same bat is $88.99 on baseballbargains.com

4. Prices are a tool for distributing goods and resources throughout the economy. Price helps move land, labor, capital into the hands of producers, and finished goods into the hands of buyers.

5. SO A GUY WALKS INTO THE STORE….WOULD YOU LOOK THROUGH THIS SALE RACK? WHY NOT?

6. Buyers/Sellers look at prices to find information on a good’s demand and supply. Tells a consumer or producer how to adjust. Whether goods are in short supply or readily available.

7. THE 32GB IS $799 ON APPLE.COM

8. CONCERT TICKETS OR TICKETS TO A SPORTING EVENT

9. High price: a specific good is in demand and more is produced. New suppliers will also join the market. Low price: a good is being overproduced. Original price: $85.00 Price: 20% Off Price: $40.00 save 53%

10. PEOPLE BUY VINEYARD VINES CLOTHING BECAUSE IT SAYS VINEYARD VINES! VINEYARD VINES PRODUCES MORE CLOTHING AT A HIGH PRICE BECAUSE PEOPLE ARE WILLING TO PAY FOR IT. I love the Cape and Martha’s…I also love to head out East Hampton and watch the horses…

11. When a supply or demand shift changes the equilibrium, price and quantity supplied need to change to solve problems. Prices can easily increase or decrease. Raising prices is the quickest way to resolve excess demand. Income, population etc. with demand Income costs, technology with supply

13. Free market pricing distributes goods through millions of decisions daily by consumers and suppliers. Prices helps goods flow through the economy without a central plan.

14. Command Economy: One organization decides what goods are produced and how much stores will charge for these goods. BUT!

15. When people conduct business without regard for government controls on price or quantity.

16. Time of War In history: Prohibition Illegal Drugs, Tobacco, Firearms, Alcohol, Copy write media (video games, software etc.)

17. Adam Smith Businesses prosper by finding out what people want, and then providing it.

18. SUMMARY: How do prices play a role in the Free Market?