Supply and Demand

KCCT Chapter 8

Please select a Team.

Globe tr

otters

Toxic waste

rs

Awesome A

’s

Pretty Purp

le ...

Rocksta

r M&M

s

Golden Cobras

17% 17% 17%17%17%17%1. Globe trotters

2. Toxic wasters

3. Awesome A’s

4. Pretty Purple Princesses

5. Rockstar M&Ms

6. Golden Cobras

Effects of Scarcity

• The basic economic problem in society is scarcity.

• SCARCITY means there isn’t enough of everything to give everybody everything they want

• it is the imbalance between unlimited wants and LIMITED RESOURCES

The effect of Scarcity

• The opposite of scarcity is SURPLUS

• Surplus exists when the supply of something is greater than the demand

• When there is a surplus of something, the cost goes down

• When there is a scarcity of something, the price goes up

Effect of scarcity• There can be a scarcity or surplus of

GOODS or SERVICES or RESOURCES• GOODS are actual products that people

buy and sell• SERVICES are work done by

professionals (the service is bought or sold)

• RESOURCES can be money, land, and labor

Which of the following is the MOST scarce?

can

dy bar

s

dia

mond

s

shoes

com

pact d

isks

25% 25%25%25%

1. candy bars

2. diamonds

3. shoes

4. compact disks

Response GridResponse Grid

Which of the following is a service?

25%

25%25%

25%

a new photocopier toner (ink) for t...

photocopier paper photocopier insta...

1. a new photocopier

2. toner (ink) for the photocopier

3. photocopier paper

4. photocopier installation

Response GridResponse Grid

Fastest Responders (in seconds)

0 Participant 1

0 Participant 2

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When there is scarcity, there is:

25%

25%25%

25%

more than ... less than ... just the r... nothing th...

1. more than is needed

2. less than is needed

3. just the right amount as needed

4. nothing that is needed

Response GridResponse Grid

Which of the following is not a person who provides a service?

25%

25%

25%

25%1. plumber

2. hair stylist

3. farmer

4. bus driverResponse GridResponse Grid

Racing Leader Board

Goods and Services

• a person that purchases a good or service is known as a CONSUMER

• every time you buy something or hire someone to do something for you, you are a consumer!

• Consumers buy goods and services to satisfy economic wants and needs

Goods and Services

• NEEDS (NECESSITIES) are items or services which are necessary for survival

• WANTS (LUXURIES) are items that are nice to have, but are not necessary for survival

In order to be considered a consumer, you must:

25%

25%

25%

25% 1. manufacture something

2. sell something

3. purchase something

4. grow something

Response GridResponse Grid

Which of the following items is a luxury?

med

icin

e

pan

ts

wat

er

ice

crea

m

25% 25%25%25%1. medicine

2. pants

3. water

4. ice cream

Response GridResponse Grid

Which of the following is a need?

25%

25%25%

25%

a bed flip-flops a car asthma med...

1. a bed

2. flip-flops

3. a car

4. asthma medicine

Response GridResponse Grid

Participant Scores

0 Participant 1

0 Participant 2

0 Participant 3

0 Participant 4

0 Participant 5

Opportunity Cost

• when you purchase a good or service from someone, the amount of money you pay is the cost

• However, the true cost of the item is greater than the money you paid for it—it’s also what you gave up to buy it

• whatever you give up to buy something is called your OPPORTUNITY COST

Opportunity Cost

• Every time you make a decision, there is an OPPORTUNITY COST.

• In economics, the goal is to use your RESOURCES as wisely as possible

You have $15 either to go to a movie with a friend or to buy a new CD. You decide to purchase the

CD. Which is the opportunity cost?

25%

25%

25%

25% 1. buying the CD

2. giving up the movie

3. $15

4. there is no opportunity costResponse GridResponse Grid

You decided to come to school today. Which of the following is

NOT your opportunity cost?

25%

25%25%

25%

doing a “turning ... sleeping in

doing what you wa... watching TV

1. doing a “turning point” lesson

2. sleeping in

3. doing what you want at home

4. watching TV Response GridResponse Grid

Racing Leader Board

A store’s warehouse contains 500 televisions, 1000 radios, 500 DVD

players, and 20 theater systems. There is the greatest scarcity of which item?

25%

25%

25%

25% 1. televisions

2. radios

3. DVD players

4. theater systems Response GridResponse Grid

Scarcity requires people to make:

25%

25%25%

25%

purchases choices goods services

1. purchases

2. choices

3. goods

4. services

Response GridResponse Grid

Team MVP

Points Team Participant

0 Team Participant

0 Team Participant

0 Team Participant

0 Team Participant

0 Team Participant

0 Team Participant

0 Team Participant

0 Team Participant

0 Team Participant

0 Team Participant

Which of the following is a product?

25%

25%25%

25%

marketing consult... personal computer

legal representat... medical care

1. marketing consultation

2. personal computer

3. legal representation

4. medical care

Response GridResponse Grid

Which of the following people provides an economic service

that meets a need?

25%

25%

25%

25% 1. movie theater owner

2. water treatment plant operator

3. passenger airplane manufacturer

4. internet service provider

Response GridResponse Grid

What percentage of your current points would you like to wager on the

next question?1. 0%

2. 25%

3. 50%

4. 75%

5. 100%

Response GridResponse Grid

Joe went to the casino and gambled his entire paycheck, $342.17, away instead of buying

food for his family. What was the opportunity cost of his decision?

25%

25%

25%

25%1. being able to buy food for his family

2. being able to gamble

3. $342.17

4. there was no opportunity costResponse GridResponse Grid

Racing Leader Board