1. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Analyzing the Market

2. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Two Types of Goods Goods (and services) fall into one of two categories. 1) Normal Goods2) Inferior Goods

3. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Two Types of Goods Goods (and services) fall into one of two categories. Items that people tend to buy more of when their incomes increase. This is true of most goods and services. Definition See Examples 1) Normal Goods2) Inferior Goods

4. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Two Types of Goods Goods (and services) fall into one of two categories. Items that people tend to buy more of when their incomes increase. This is true of most goods and services. Definition A) New Cars B) Coca-Cola or Pepsi C) Televisions D) Clothes Examples 1) Normal Goods2) Inferior Goods What examples can you think of?

5. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Two Types of Goods Goods (and services) fall into one of two categories. Items that people purchase more of when their incomes decrease. These items tend to be low-cost options for saving money. Definition See Examples 1) Normal Goods2) Inferior Goods

6. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Two Types of Goods Goods (and services) fall into one of two categories. Items that people purchase more of when their incomes decrease. These items tend to be low-cost options for saving money. Definition A) Ramen Noodles B) Frozen Dinners C) Bus Transportation D) Used Clothes Examples 1) Normal Goods2) Inferior Goods What examples can you think of?

7. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Related Goods Sometimes goods (or services) are related to each other in one of two special ways. 1) Substitute Goods 2) Complementary Goods

8. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Related Goods Sometimes goods (or services) are related to each other in one of two special ways. 1) Substitute Goods 2) Complementary Goods Items that may replace each other when used or consumed. Definition See Examples

9. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Related Goods Sometimes goods (or services) are related to each other in one of two special ways. 1) Substitute Goods 2) Complementary Goods Items that may replace each other when used or consumed. Definition A) Butter.......... Margarine B) McDonald’s..... Burger King Examples What examples can you think of?

10. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Related Goods Sometimes goods (or services) are related to each other in one of two special ways. 1) Substitute Goods 2) Complementary Goods Items that are almost always consumed or used together. Definition See Examples

11. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Related Goods Sometimes goods (or services) are related to each other in one of two special ways. 1) Substitute Goods 2) Complementary Goods Items that are almost always consumed or used together. Definition A) Hot Dogs..... Hot Dog Buns B) Toothbrush.... Toothpaste Examples What examples can you think of?

12. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Economic Time Frames There are two ambiguous time frames that economists use to analyze a market. 1) Short Run2) Long Run

13. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Economic Time Frames There are two ambiguous time frames that economists use to analyze a market. 1) Short Run2) Long Run An undefined period of time that is NOT long enough to allow consumers or producers enough time to adjust to all changes in an economic situation. Definition See Example

14. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Economic Time Frames There are two ambiguous time frames that economists use to analyze a market. 1) Short Run2) Long Run Suppose Coca-Cola Vanilla becomes extremely popular. Coca-Cola cannot increase its output immediately to accommodate demand because it takes time to adjust to the new demand. Example An undefined period of time that is NOT long enough to allow consumers or producers enough time to adjust to all changes in an economic situation. Definition

15. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Economic Time Frames There are two ambiguous time frames that economists use to analyze a market. 1) Short Run2) Long Run An undefined period of time that is long enough for people to adjust to all changes in an economic situation. Definition See Example

16. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Economic Time Frames There are two ambiguous time frames that economists use to analyze a market. 1) Short Run2) Long Run An undefined period of time that is long enough for people to adjust to all changes in an economic situation. Definition On the other hand, Coca-Cola Vanilla can increase its production in the long run by opening new factories and by locating additional raw materials. Example

17. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Identifying Markets Example 1 Example 2 When analyzing a market, it is always important to know which market you are talking about!

18. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Identifying Markets When analyzing a market, it is always important to know which market you are talking about! Which market is this? ? Example 2 Example 1

19. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Identifying Markets When analyzing a market, it is always important to know which market you are talking about! Example 2 Which market is this? Oranges? Orange Juice? Navel Oranges? Example 1

20. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Identifying Markets When analyzing a market, it is always important to know which market you are talking about! Example 1 Which market is this? ? Example 2

21. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Identifying Markets When analyzing a market, it is always important to know which market you are talking about! Example 1 Which market is this? Shoes? Women’s Shoes? High Heels? Example 2

22. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. A Market Graph Each graph you draw will contain each of the following items.

23. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. A Market Graph Each graph you draw will contain each of the following items. 1) Title of the market Market for High Heels

24. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. A Market Graph Each graph you draw will contain each of the following items. 1) Title of the market 2) Price range on the vertical axis (y- axis) $0 $10 $20 $30 $40 $50 $60 $70 Market for High Heels Price

25. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. A Market Graph Each graph you draw will contain each of the following items. 1) Title of the market 2) Price range on the vertical axis (y- axis) $10 $20 $30 $40 $50 $60 $70 Market for High Heels 3) Quantity on the horizontal axis (x- axis) Quantity 0255075100125150175 $0 Price

26. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Creating a Graph This unit will require us to draw several market graphs. Follow these steps. $10 $20 $30 $40 $50 $60 $70 Market for High Heels Quantity 0255075100125150175 $0 Price

27. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Creating a Graph This unit will require us to draw several market graphs. Follow these steps. 1) Plot data points using provided information $10 $20 $30 $40 $50 $60 $70 Market for High Heels Quantity 0255075100125150175 $0 Price See Data

28. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Creating a Graph This unit will require us to draw several market graphs. Follow these steps. 1) Plot data points using provided information $10 $20 $30 $40 $50 $60 $70 Market for High Heels Quantity 0255075100125150175 $0 Price Price ($)Quantity $20 $30 $40 $50 50 75 100 125 Plot Data

29. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Creating a Graph This unit will require us to draw several market graphs. Follow these steps. 1) Plot data points using provided information $10 $20 $30 $40 $50 $60 $70 Market for High Heels Quantity 0255075100125150175 $0 Price Price ($)Quantity $20 $30 $40 $50 50 75 100 125

30. Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Creating a Graph This unit will require us to draw several market graphs. Follow these steps. 1) Plot data points using provided information $10 $20 $30 $40 $50 $60 $70 Market for High Heels Quantity 0255075100125150175 $0 Price Price ($)Quantity $20 $30 $40 $50 50 75 100 125 2) Connect data points with a line