1. Mr. Bammel

2. Equilibrium Projects As I discuss all the topics of the equilibrium projects, think about each and be sure that what you put in your projects reflects the correct information. Equilibrium Disequilibrium (Shortage) Disequilibrium (Surplus) Price Ceilings Price Floors Increase in Supply Decrease in Supply Increase in Demand Decrease in Demand

3. Prices at Work Consumers use prices as a means to compare the value of one product to the value of another; cost-benefit analysis… Prices of products help simplify the process of purchasing; Prices are a commonality between consumers and producers for the exchange to occur; Without prices, we would have to Barter: exchange one type of good or service for another;

4. The Benefits of the Price System Incentives Signals Responsive and Flexible Is “free” to operate In your notes, Read pages 124 and 125 and explain how the benefits exist within a price system.

5. Choice and Efficiency One of the best things about the price system is the range of choices we have; However, sometimes the government does seem to get involved; example would be rationing and shortages…limiting the amount that can be consumed.

6. Black Markets When people choose to operate without regard to the government; Exists when consumers pay more so they can buy a product in which rationing makes that product unavailable.

7. Prices and Resource Allocation Read on page 127, label a section in your notes “Prices and Resource Allocation” and explain how prices will help distribute resources where they are needed. I would like for you to come up with an example OF YOUR OWN which you believe justifies your explanation.