Current Events (usually none on Quiz/Test days):
The Ch. 3 Sec. 2 Quiz is today:
Clear your desk except for a pencil. Once everyone is quiet, and no talking during the Quiz, we can begin. Be sure to put your name on the Quiz and the Scantron. You may write on both the Quiz and the Scantron.
If you finish early, you may take out non-class materials; once everyone is finished, put away the non-class materials. Then, I will collect the Scantron first, and then I will collect the Quiz.
Be sure your name is on both the Scantron and the Quiz.
If your name is not on the Quiz it will not be returned.
"The road ahead will be long. Our climb will be steep. We may not get there in one year or even in one term."
Obama's Acceptance Speech in Chicago, Ill., November 5, 2008.
Translation: the economy will not improve until 5-8 years after the inauguration: 2013-2017?
How long in Afghanistan? 3:39
The Make-Up for the Chapter 3 Section 1 Quiz is today.
The Chapter 2 Make-Up Test is today.
The Ch. 2 Sec. 3 American Free Enterprise Make-Up Quiz is today.
The electronic edition of the Philadelphia Inquirer is available. We have the Sunday edition, available on Mondays, in addition to the Tuesday through Friday editions on the other days.
Please follow the steps below:
Click on the words "Access e-Inquirer" located on the gray toolbar underneath the green locker on the opening page.
Prices and Markets
Chapter 4: Demand
Section 1: What Is Demand?
Demand is easy to understand because it involves only two variables—the price and quantity of a specific product at a given point in time. Demand does not always stay the same and can be determined by a demand schedule, which shows the various quantities demanded of a particular product at all prices that might prevail in the market at a given time. The demand schedule displays individual demand curves and market demand curves.
Section 2: Factors Affecting Demand
Only a change in price can cause a change in quantity demanded. When the price goes up, less is demanded; when the price goes down, more is demanded. The following factors affect demand: the income effect and the substitution effect. Furthermore, demand can change because of changes in the determinants of demand: consumer income, consumer tastes, the price of related goods, expectations, and the number of consumers.
Section 3: Elasticity of Demand
Elasticity is a general measure of responsiveness— an important cause-and-effect relationship in economics. There are three different forms of elasticity: elastic demand, inelastic demand, and unit elastic. To estimate elasticity, it is useful to look at the impact of a price change on total expenditures, or the amount that consumers spend on a product at a particular price. This is sometimes called the total expenditures test. The answers to three questions help determine a product's demand elasticity. Can the purchase be delayed? Are adequate substitutes available? Does the purchase use a large portion of income?
Section 1 What is Supply?
Law of supply
Law of Supply, 2:20
In-class assignment: in your own words, define demand. What is the Law of supply? How does demand relate to supply? Graph out a sample Law of supply.
7th to enjoy:
Supply curve video, 6:51
In-class assignment: define supply curve. In your own words, describe a supply curve.
Draw a supply curve graph by following the video.
Use the market for cars as your example.
Who needs to be willing and able?
What do suppliers want?
What do consumers want?
What happens when cars are more expensive?
What happens when there is a change in price?
What happens to demand?
market supply curve
In-class assignment: in your own words, define market supply (long run supply curve).
Long Run Supply Curve, 3:38
In the short run, a supply curve from the firm's marginal cost curve can be demonstrated but this video shows what happens to the supply curve when the firm is making a profit or loss, i.e., the long run or market supply curve.
change in quantity supplied
change in supply
Changes in Supply, 4:39
Gas Prices, Gas Gouging, Peak Oil, Elasticity, Supply Demand, 1:17
Gasoline gas prices are based on oil prices. Oil prices are determined by the oil supply and oil demand. Right now, both oil supply and oil demand are almost inelastic. As gasoline gas and oil prices go up, the demand stays almost the same. As the oil supply reaches peak oil or maximum production or extraction, the demand curve becomes vertical, or inelastic. The inelasticity of the oil supply and oil demand set things up for price volatility of both oil and gasoline. The seasonal changes in gas and oil prices we've seen in the last three years is probably due to reaching peak oil. This short screencast shows an inelastic oil supply curve, as well as an inelastic oil demand curve, and what happens to prices as the oil supply or oil demand change.
Chapter 3 Prep
Chapter 3: Business Organizations
Temptations - Silent Night, 6:10
Email (or hand in hard copy) to firstname.lastname@example.org.
Quiz Friday: http://shanawiki.wikispaces.com/Honors+Business+Economics+Fall+2010+Chapter+3+Section+2+Quiz+Prep+Page
1. p. 112, #17-18.