1. ISS Unit 6 2013

2. Using a Venn Diagram, compare and contrast Private and Public goods.

3. I can explain and give examples of how numerous factors influence the supply and demand of products.

4. How do you feel about economics thus far? Are you confused? What do you need more help on this unit? Anything that you just dont get?

5. Any place where people come together to buy and sell goods or services.

7. It is the willingness and ability of buyers to purchase different quantities of a good at different prices during a specific time period.

9. DEMAND QUANTITY DEMANDED This is my willingness and ability to buy something at a particular price This is the actual amount (or number) of units purchased at a specific price.

10. A law stating that as the price of a good increases, the quantity demanded of the good decreases, and that as the price of a good decreases, the quantity demanded of the good increases. If price then quantity demanded

11. They move in opposite directions because of the law of diminishing marginal utility, which states that as a person consumes additional units of a good, eventually the utility or satisfaction gained from each additional unit of the good decreases.

12. Consider the utility that a person obtains from drinking glasses of lemonade on a hot day. Suppose the first glass just begins to quench one's thirst. After two glasses, however, the thirst has all but disappeared. A third glass of lemonade might also provide some utility, but not as much as the second glass. A fourth glass cannot be finished. In this example, the marginal utilitythe addition to total utility that one obtains from drinking lemonade on a hot dayis increasing for the first two glasses but is decreasing beginning with the third glass and would continue to decrease if one were to consume further glasses.

13. Individuals consume goods and services because they derive pleasure or satisfaction from doing so. Economists use the term utility to describe the pleasure or satisfaction that a consumer obtains from his or her consumption of goods and services. Utility varies from individual to individual according to each individual's preferences.

14. PLC: Students will be creating their own demand curves. See the Day 5 – Demand Curve Activity on Sharepoint

15. Shifts in Supply & Demand Some changes in circumstance will cause either demand or supply to shift Left (Decrease) or Right (increase) QoQo Q1Q1 Q2Q2 QoQo Q1Q1 Q2Q2 DEMAND SUPPLY

16. Factors that Shift Demand When income demand for goods/services also decreases. Change In Income

17. Factors that Shift Demand Price of substitutes (one item used instead of another) When the price of a good increases, demand for its substitute increases.

18. Availability of Substitutes When availability of a good increases, demand for its substitute decreases.

19. Factors that Shift Demand Price of Complementary Goods (goods that often are used together). When the price of a good increases, the demand for its compliment decreases

20. Availability of Complimentary Goods When the availability of a good increases, the demand for its compliment increases.

21. . Elasticity – how the quantity of a product bought/sold reacts to price, income, etc. A product is elastic if the amount of it demanded stretches and shrinks based on price (luxury items like electronics) ) A product is inelastic if the amount of it demanded pretty much stays constant despite price (necessities like gas and water)

22. Factors that Shift Demand Change in the number of buyers = If the population of a community demand for products

23. Factors that Shift Demand Change in styles, tastes, habits. THEN NOW

24. Factors that Shift Demand Change in Expectations When people expect either a shortage of a good or an increase in its price, their demand today will increase.

25. http://www.youtube.com/watch?v=8- yWKgZv9JY http://www.youtube.com/watch?v=8- yWKgZv9JY

26. Elasticity of Demand Activity

27. 1.Elasticity refers to: A).inelasticity in the market. B). how the quantity of a product bought/sold reacts to price, income C).how the quantity of a product does not react to price and income in the market. D).rubber bands in my desk drawer.