1. Bell Ringer – 2/17/2009 1. Name a good that has elastic demand. (price greatly affects demand) 2. Name a good that has inelastic demand. 3. Describe why you think countries use money for exchange, instead of bartering?

2. A good has elastic supply if it can be made: Quickly & Inexpensively Using few, readily available resources Has inelastic supply if it takes a lot of: Time & Money Resources that are not readily available Supply & Elasticity

3. Money $$ Money – a standard unit of exchange. All economic systems use some type of money.

4. Determinants of Demand Determinants of Demand – non-price factors that influence demand for a good or service Non-price Determinants: Consumer expectations Prices of related goods Tastes and preferences

5. Revenue Total revenue – (total receipts) the total income that a business receives from selling its products ($$ from sales). A business makes a profit when costs of production are less than revenues. Profit – amount of $$ remaining after producers have paid all their costs.

6. Revenue & Elasticity If a price  causes  in total revenue, demand is elastic If there is   in revenue after a price  then there is inelastic demand for the good or service.

7. Supply (Ch 4, Sn 1) Supply – quantity of goods/services that producers offer at various prices. Law of Supply – producers supply more goods when they can sell them at higher prices; supply fewer goods sold at lower prices.

8. Homework Read Ch 4 Complete Ch 4 Review, “Identifying” and “Understanding”. Due Friday