1. Potential Solutions Most economics would suggest sealed-bid auction.

2. So... Write down –Name –The maximum price you would be willing and able to pay each class period to have a chair to sit on.price

3. Scarce Chairs Economics: The study of scarce resources

4. Economics Study of scarce resources –What is scarcity? What does supply and demand have to do with this? Scarcity is a function of both demand and supply. –The greater the demand relative to supply, the more scarce something is. What influences our decisions?

5. Solution Highest bids get seats. What did you bid? Is that fair? That’s economics.

6. Economics Because scarcity exists, we must make choices about how to allocate our scarce resources The study of the choices people and institutions make because of scarcity is called... Economics!

8. Exit Slip 1. Economics is the study of _____ and _____. 2. Because of ______we must make decisions on how to allocate our ______. 3. Economists assume that we make _______ based on our own ________. 4. _________ are what motivate our decisions. 5. The greater the _______relative to supply, the more ____________something is. What resource was scarce in our activity today? (not in word bank)