OVERVIEW: WEEK OF SEPTEMBER 2nd
Topic
This week, we turn our attention to our next topic, that of supply and demand. These two constitute the tools of economics by which we learn to understand and navigate the world around us..............which is made up of markets.
The illustration on the right may appear as a cruel joke, but it really highlights how changes in supply and demand cause changes in price and quantity in all markets. While at first glance, you may feel intimidated by what is going on in the image, by the end of the week, it will make more sense.
But first, we need to discuss those factors that cause changes in supply and demand. The effects on these two variables, price and quantity, will be obvious once we determine these changes. One important take away here: get accustomed to labeling, because it's very easy to get lost and figure out where you've been and where you're at if you don't label.
In a nutshell, your understanding of the determinants of supply & demand should provide a rational set of tools by which to determine not only why individuals participate in markets, but what keeps them in markets.
The factors of demand and supply (determinants) are what establish prices and quantities in all markets. Pay very close attention to chapter three because this material is the "bread and butter" of economic analysis. In other words, supply and demand are the tools that will allow you to analyze and determine why economic units, such as households, businesses and government, make the decisions that they make.
This chapter is important and requires you to practice, practice, practice! The study guide is full of questions related to this chapter so you can exercise the material. Please take advantage of these exercises and spend quality time on this chapter, and the many videos that I provide.
Objectives
By the end of this week you will be able to......
- Define a market.
- Identify the law of demand and the law of supply
- Identify the determinants of demand and supply
- Differentiate between changes in quantity demanded versus changes in demand, and quantity supplied versus supply (extremely important)
- Illustrate a market in equilibrium
- Articulate the direction of price and quantity when demand and/or supply shift
- Make appropriate shifts to the supply and demand curve based on specific events
- Analyze any market given a set of events
Weekly Schedule
| Due date | Activity |
|---|---|
| Textbook Chapter 3, section 3.1-3.3: Demand and Supply |
|
| Refer to Schedule | Assignment: Relevant Study Guide Questions |
| Sunday, 9/8 | Quiz #2 |