Transcript equilibrium wage

JEOPARDY RULES
• You will be divided into three teams.
• Each member of the team will take
turns giving the solution.
• Once your host finishes reading the
answer, the first person to raise their
hand gets to state the answer for
their team!
• The team with the most points in the
end gets 3 bonus points; 2 bonus
points for the team in second and 1
bonus point for third place.
http://rubbercat.net/mt/2012-06/
DEMAND
SUPPLY
MARKET
EQUILIBRIUM
BUSINESS
TYPES
MARKET
FORMS
Demand $200
It is the desire to use a good/service and the
ability to pay for it.
Demand
Demand $400
When the price of goods are lower,
demand for that good should…
Increase
Demand $600
This factor of change is when goods are
used together; a rise in demand for one
good will increase demand for the other.
Complements
Demand $800
The elasticity for the demand curve for
luxury goods or goods with many substitutes
is this…
Elastic
Demand $1,000
When the price of solar panels falls, the
demand curve for wind turbines will…
Shift to the Left
Supply $200
These expenses vary based on the rate of
production.
Variable Expenses
Supply $400
You will move along the supply curve if there
is a change in what factor…
Price
Supply $600
It’s when hiring more workers improves
one’s rate of production.
Increasing Returns
Supply $800
If producers expect the price of their product
to rise in the future, the supply curve will…
Shift to the Right
Supply $1,000
A supply curve is this, when it takes longer
to adjust production to a change in price.
Inelastic
Market Equilibrium $200
It’s the point where quantity supplied is the
same as quantity demanded.
Equilibrium Price
Market Equilibrium $400
When the demand for a product goes down,
this happens to equilibrium price…
Price Goes Down
Market Equilibrium $600
This occurs when demand is greater than
supply.
Shortage
Market Equilibrium $800
This occurs when quantity supplied and
quantity demanded are not equal.
Disequilibrium
Market Equilibrium $1,000
Companies conduct this in order to figure
out prices at which consumers will buy
goods, and prices firms will sell goods.
Market Research
Business Types $200
It’s when businesses merge that are
involved in different steps of making or
advertising for a good.
A Vertical Merger
Business Types $400
It’s a person who buys the right to sell a
company’s product in a given area.
Franchisee
Business Types $600
They are businesses that are operated for
the shared benefit of the owners.
Conglomerate
Business Types $800
Limited funds, unlimited liability and a
limited life span are all disadvantages
of this business.
Sole Proprietorship
Business Types $1,000
It’s the profit that is shared by a corporation
with its stockholders…
Dividend
Market Forms $200
It’s when there is just one seller who can in
turn control prices.
A Monopoly
Market Forms $400
It’s a law that protects a company’s idea or
invention for a number of years.
A Patent
Market Forms $600
With this market type, all products are standard
and buyers/sellers act independently.
Pure/Perfect Competition
Market Forms $800
Companies use differentiation to distinguish
their products in this market structure.
Monopolistic Competition
Market Forms $1,000
OPEC is an example of this type of
market structure.
A Cartel
Draw a supply & demand curve to answer this question
Dell is selling computers and Apple decides to raise
the price of its Mac Books by $500.
Which factor of demand for Dell caused this change?
What was Dell’s original equilibrium price?
What is Dell’s new equilibrium price now?
SUPPLY
DEMAND (BEFORE)
DEMAND (AFTER)
Point
Price
Quantity
Point
Price
Quantity
Point
Price
Quantity
A
$200
10
A
$200
90
A
$200
110
B
$400
30
B
$400
70
B
$400
90
C
$600
50
C
$600
50
C
$600
70
D
$800
70
D
$800
30
D
$800
50
E
$1,000
90
(LABEL EVERYTHING!)
E
$1,000
10
E
$1,000
30
Price
($)
SUPPLY
1,000
800
600
400
DEMAND 2
200
DEMAND 1
0
0
20
40
60
80
100
120
140
Quantity