Supply and Demand Introductory concepts of Macroeconomics Next.

Supply and DemandIntroductory concepts of

Macroeconomics

Next

•How changes in the market affect supply, demand, and prices

•How to identify elastic and inelastic goods

•How to identify complementary and substitute goods

•How to identify durable and nondurable goods

You will learn:

Time:

This tutorial should take you about 30 minutes to complete.

Back Next

Start Over

Quit

Throughout this tutorial, you will access articles by clicking on links like the one below:

http://thelinkslooklikethis.com

Read through the recommended sections, then close the browser window to return to this tutorial. Activities will follow designed to help clarify what you’ve learned. You will be given opportunities later to access the content again, if needed.

During the activities, use your pen and paper to write down your answers. Score yourself to gauge how well you’re doing.

To participate in this tutorial, you will need:•Internet access•A piece of paper•Pen or pencil

Instructions

Back Next

Start Over

Quit

http://thelinkslooklikethis.com/

Changes in Supply and DemandFollow the link below and read from the start through “supply curve shifts”. Then close the browser to return to the tutorial and proceed with activities.

http://en.wikipedia.org/wiki/Supply_and_demand

Back Next

Start Over

Quit


Changes in Supply and Demand

Back Next

Now that you know about supply and demand, do you understand the cartoon?

The suppliers (the kids) chose to restrict supply to artificially increase apple prices.

In response to a higher price, less people are likely to buy.

Start Over

Quit


What is the expected change in supply or demand?

a) Increase Supply b) Decrease Supplyc) Increase Demandd) Decrease Demand

Quantity

Pric

e

SS

DD

Read the scenario about the “sock market” and write down your answer before pressing “next”.

Scenario 1:Scientists discover a hybrid plant that produces 5 times more cotton per season.

Start Over

Quit

Back Next


Answer:The correct response is a) Increase Supply.

How do you think increased supply will change the price of socks?

Write down “higher price” or “lower price”.

Click here to view the change in supply.

Quantity

Pric

e

SS

DD

Scenario 1:Scientists discover a hybrid plant that produces 5 times more cotton per season.

Did you choose a lower price?Give yourself a point for each one you got right.

Watch how the movement in the supply or demand curve changes the equilibrium price.

Review the article: http://en.wikipedia.org/wiki/supply_and_demandBack Next

Start Over

Quit

http://en.wikipedia.org/wiki/supply_and_demand

Quantity

Pric

e

SS

DD




Scenario 2:World-wide increase in average temperature causes people to abandon their shoes for flip flops.


Back Next

Start Over

Quit

Quantity

Pric

e

SS

DD



Scenario 2:World-wide increase in average temperature causes people to abandon their shoes for flip flops.

Answer:The correct response is d) Decrease Demand.




Did you choose a lower price? Give yourself a point for each one you got right.

Review the article: http://en.wikipedia.org/wiki/supply_and_demandBack Next

Start Over

Quit

http://en.wikipedia.org/wiki/supply_and_demand



Quantity

Pric

e

SS

DD


Scenario 3:Exposure to radiation causes everyone to grow a third foot.


Start Over

Quit

Back Next

Quantity

Pric

e

SS

DD


Scenario 3:Exposure to radiation causes everyone to grow a third foot.Answer:The correct response is c) Increase Demand.




Did you choose a higher price?Give yourself a point for each one you got right.


Need more help? Click here for help.

Start Over

Quit

Back Next



How will the price change in reaction?Higher or Lower?

Quantity

Pric

e

SS

DD


Scenario 4:The textile labor union lobbies for increased wages.


Start Over

Quit

Back Next

Quantity

Pric

e

SS

DD


Scenario 4:The textile labor union lobbies for increased wages.

Answer:The correct response is c) Decrease Supply.


Did you choose a higher price?

If you got both of these right, you get another 2 points.


Start Over

Quit

Back Next

Progress Report

How are you doing so far? If you got at least three of the last four questions right, you’re ready to move on to the next section.

If you didn’t get three right, consider checking out the supply and demand help page for clarification. Click here.

Start Over

Quit

Back Next

Elasticity

Follow the link below and read the section called “elasticity”. Then close the browser to return to the tutorial and proceed with activities.


Start Over

Quit

Back Next


Elasticity

Now that you know about elasticity, think about this cartoon.

Does everybody need candy? Stationary? Microcomputers?

Are any of these products inelastic?

Why would a seller want to offer inelastic products?

Start Over

Quit

Back Next

Elasticity

Elastic Inelastic

Diabetic Insulin

Movie Tickets

Golf Clubs

Heating Oil

Pedicure

In the list below, identify which items you think are elastic or inelastic. Write your answers on paper.


Start Over

Quit

Back Next

Elasticity

Elastic Inelastic

Diabetic Insulin

Movie Tickets

Golf Clubs

Heating Oil

Pedicure

How’d you do? Mark the questions you correctly identified. Then proceed to the next screen for explanation.

What do you think?

Start Over

Quit

Back Next

Elasticity

Inelastic Items: Diabetic Insulin & Heating OilWhy? Both are survival items that buyers have to purchase regardless of price.

Elastic Items: Movie Tickets & PedicureWhy? Both are luxury items that may be eliminated if prices are too high.

?: Golf ClubsWhy? This example could go either way. If you’re a professional golfer who has to have golf clubs to be able to do your job, then golf clubs are inelastic. However, despite what many recreational golfers might tell you, golf clubs are not essential for survival.

Give yourself a point for each right answer.

Start Over

Quit

Back Next

Progress Report

How are you doing so far? If you got at least three of the last five questions right, you’re ready to move on to the next section.

If you didn’t get three right, consider reading the elasticity help page for clarification. Click here.

Start Over

Quit

Back Next

Complementary and Substitute Goods

Follow the link below to read the article on “substitute goods”. Then click on the browser to come back to the tutorial. Follow the same procedure to read the article on “complementary goods”. Make sure you read both articles before clicking the “next” button.

http://en.wikipedia.org/wiki/Substitute_goodhttp://en.wikipedia.org/wiki/Complementary_good

Start Over

Quit

Back Next

http://en.wikipedia.org/wiki/Substitute_good

http://en.wikipedia.org/wiki/Complementary_good


Now that you know about complementary and substitute goods, what do you think about this cartoon?

What substitute goods is the wife using? Why does the husband want her to buy bulk, off-brand products?

Start Over

Quit

Back Next

Complementary and Substitute GoodsIn relation to the given product, identify which are complimentary, substitute, and unrelated goods. Write down your answers on paper.

Product: Hot Dogs

Buns

Bratwurst

Coffee

Football Tickets

McDonald’s

Start Over

Quit

Complementary Substitute Unrelated

Back Next


Check your answers and give yourself a point for each correct answer.

Product: Hot Dogs

Buns

Bratwurst

Coffee

Football Tickets

McDonald’s

Review the article: http://en.wikipedia.org/wiki/substitute_goodReview the article: http://en.wikipedia.org/wiki/complementary_good

Start Over

Quit


Back Next

http://en.wikipedia.org/wiki/substitute_good

http://en.wikipedia.org/wiki/complementary_good


In relation to the given product, identify which are complimentary, substitute, and unrelated goods. Write down your answers on paper.

Product: Car

Scooter

Gas

Transit Card

Mechanic Service

Lawn Mower


Start Over

Quit


Back Next


Product: Car

Scooter

Gas

Transit Card

Mechanic Service

Lawn Mower


Start Over

Quit


Back Next


In relation to the given product, identify which are complimentary, substitute, and unrelated goods. Write down your answers on paper.

Product: College Education

Xbox

Textbooks

Office Chair

Trade school

Lawn Chair

Start Over

Quit


Back Next



Xbox

Textbooks

Office Chair

Trade school

Lawn Chair

What do you think?


Start Over

Quit


What do you think?

Back Next

XboxDepending on your priorities, you could make the argument that you have to have an Xbox at college, you will play Xbox instead of going to college, or that the two are unrelated. What do you think?

Office ChairA student may need to an office chair to sit in while studying at college. However, an office chair is not required to go to college. Clearly, however, an office chair is not a substitute for education. What do you think?



These two examples are meant to encourage you to think deeper about what can be considered complementary and substitute.

Start Over

Quit


Back Next

Next

Progress Report

How are you doing so far? If you got at least 2 of the last five questions right, you’re ready to move on to the next section.

If you didn’t get three right, consider reading the complementary and substitute help page for clarification. Click here.

Start Over

Quit

Back

Durable and Nondurable Goods

Follow the link below to read the article on “durable goods”. Then close the browser to return to the tutorial and proceed with activities.

http://en.wikipedia.org/wiki/Durable_goods

Next

Start Over

Quit

Back

http://en.wikipedia.org/wiki/Durable_goods

Durable and Nondurable Goods

Next

Now that you know about durable and nondurable goods, what do you think about this cartoon?

What kind of goods are bought repeatedly as they are used up? What kind of goods can be kept around long-term after purchase? Which is durable and which is nondurable?

Start Over

Quit

Back

Durable vs. Nondurable goods

Nondurable

Diabetic Insulin

Movie Tickets

Golf Clubs

Heating Oil

Pedicure

Identify which goods you think are durable and nondurable.


Start Over

Quit

Durable

Back Next

Durable vs. Nondurable goods

Diabetic Insulin

Movie Tickets

Golf Clubs

Heating Oil

Pedicure

Give yourself a point for each correct answer.

Durable Nondurable

Start Over

Quit

Back Next

Next

Progress ReportHow are you doing so far? If you got at least 4 of the last 5 questions right, you’re ready to move on to the next section.

If you didn’t get 4 out of 5 correct, consider reading the durable and nondurable goods help page for clarification. Click here.

Start Over

Quit

Back

Final ReportCongratulations! You have reached the end of the tutorial.

Add up your points to see how you rate:

Click here to return to the start.

Thank you for participating. If you would like to comment on the tutorial, please e-mail [email protected].

27-33 Exceptional performance

19-26 A strong foundation to in introductory macroeconomics

18 or Below You may want to review the material

Start Over

Quit

Back

Supply and Demand Introductory concepts of Macroeconomics Next.

Documents

Transcript of Supply and Demand Introductory concepts of Macroeconomics Next.