Supply & Demand Test Review

Unit 2: Supply & Demand, Business & Labor

Goals – 7.01, 8.01-8.08, 9.03

Unit Essential Questions

1) How does the consumer drive the economy?

2) How do the forces of supply and demand lead to efficient use of resources?

3) How do business organizations help to grow the economy?

4) What role does profit play in business activity?

5) How have the rights of workers transformed in the United States? UNIT PACING

Day 1: (8.04)

 Law of Demand

 Law of Supply

Day 2: (8.05,8.06,9.03)

 Market Price

 Changes in Supply & Demand

Day 3: (7.01,8.07,8.08)

 Business Organizations - Sole Proprietorship, Partnership,

Corporation, Non-Profit Organization

 Review Business Organizations

 Is Wal-Mart Good for America?

Day 4: (7.01,8.07,8.08)

 Quiz: Types of Business Organizations

 Types of Workers – Labor Unions

 Video: The Rise of Labor

Day 5:

6) Test Review & Test - Supply & Demand, Business & Labor Unit 2 – Markets - Supply, Demand, Prices and Markets NCSCOS – 8.01, 8.04, 8.05, 9.03

PART 1 – SUPPLY & DEMAND Chapter 21, Section 1 (pgs. 569-572)

Answer the Following o What is demand? o What are the (3) components of affective demand? o What is market demand? o What does a demand schedule show? o What is a demand curve? o What is the Law of Demand o What does utility mean? o What is the law of diminishing marginal utility?

Chapter 21, Section 2 (pgs. 574-578) Answer the Following o What factors affect demand? (determinants of demand) o What is demand elasticity? o What is elastic demand? o What is inelastic demand?

Chapter 21, Section 3 (pgs. 581-586) Answer the Following o What is supply? o What is the law of supply? o What is a supply schedule? o What is a supply curve? o What affects supply? (Determinants of Supply) o What is supply elasticity? o What is elastic supply? o What is inelastic supply? PART 2 - SUPPLY AND DEMAND, MARKETS AND PRICES Chapter 21, Section 4 (pgs. 588-592)

Define the Following  Equilibrium Price  Surplus  Shortage  Price Controls  Price Ceiling  Price Floor

Answer the Following o Prices are signals, what do they tell us (3)? o What are the advantages of using price as the decision maker in a market economy? Prices are Neutral Prices are Flexible Price provides Freedom of Choice Prices are Familiar

Supply & Demand Unit

Lesson 1: The Law of Demand - Class Questions

1) How many of you would be willing to buy a doughnut at the

following prices?

(.30, .40, .50, .60, .70, .80)

2) How many doughnuts would be bought at the following prices?

(.55, .75)

3) What does the demand curve tell us about the relationship

between price and demand?

4) What would you do if you thought the price of doughnuts was too

5) Based on your observations, what is the law of demand? Lesson 2: The Law of Supply - Class Questions

1) What people are involved in supplying doughnuts?

2) What would you do if you thought people would pay a high price

for doughnuts?

3) What would you do if you thought people would only pay a small

price for doughnuts?

4) How many would you produce at the following prices?

(.30, .40, .50, .60, .70, .80)

5) About how many would be sold at the following prices? (.55, .75)

6) What does the supply curve tell us about the relationship between

price and supply?

7) Based on your observations, what is the law of supply?

Lesson 3: Market Price, Changes in Supply & Demand

1) What does the point where the supply curve and the demand curve

intersect represent?

2) If another class began selling doughnuts in school, what effect

would this have on supply? Graph Change, Label S1

3) Suppose Krispy Kreme had a shortage of dough, thus our class

could only get a limited number of boxes. What effect would this

have on supply? Graph Change, Label S2

4) Suppose it is late May, and our class is selling doughnuts. Another

class began selling ice cream. What effect would this have on

demand, and why? Graph Change, Label D1

5) Suppose we were the only class at school selling snack items.

What effect would this have on demand? Graph Change, Label D2

6) What effect would each of these have on price? Unit 2 – Business and Labor NCSCOS – 8.07

PART 3 – TYPES OF BUSINESS Chapter 22, Section 1 (pgs. 601-606) Fill in the Following Chart on Business Organizations Sole Proprietorship Partnership Corporations Advantages

Disadvantages

Define the Following  Charter  Stock  Stockholders  Non-Profit Organization  Cooperatives  Franchise  Liability (limited/unlimited)  Life (limited/unlimited) PART 4 – THE AMERICAN LABOR FORCE Chapter 22, Section 2 (pgs. 609-613)

Define the Following  Civilian Labor Force  Labor Union  Craft Union  Industrial Union  Local Unions  National Unions  AFL-CIO

Define the Following Negotiation Tactics  Collective Bargaining  Mediation  Arbitration

Define the Following Labor Union Tactics  Strike  Boycott  Picketing

Define the Following Management Tactics  Injunction  Lockout

Define the Following Union and Management Agreements (p. 610)  Closed Shops  Union Shops  Modified Union Shops  Agency Shops

Define each Government Action  Clayton Act (1914)  Taft-Hartley Act (1947)  Right-to-Work Laws  National Labor Relations Board Types of Business Organizations Quiz

1) What is the least common form of business organization?

2) What is the most difficult form of business organization to establish?

3) This type of business organization involves the least amount of risk to the

owner.

4) The easiest type of business to organize.

5) When courts can seize property to satisfy claims against a firm or business.

6) The term that describes the need to reorganize a business when an owner dies.

7) The advantage of this type of business is that it has limited liability and

unlimited life.

8.9) Corporations can be formed by the sale of these (2) items.

10) What is a non-profit organization? Types of Workers – Labor Unions

1) This type of worker is involved in manufacturing or non-farm labor.

2) Person who has learned a trade or craft either through a vocational school or

as an apprentice.

3) When a third party is brought in to help in a contract dispute. The decision is

not final.

4) When a third party is brought in to help in a contract dispute. The decision is

final.

5) When workers decide to stop working until their demands are met in a contract

dispute.

6) An organization of workers that try to improve wages and working conditions for

their members.

7) When workers encourage the public to not buy products or services of a

particular party. (Think colonies 1700’s)

8) Laws passed by state governments to prevent certain types of labor union

organizations (closed shops, union shops). 9) When a business closes the doors to the business until workers agree to a

contract. Unit 2 & 3 – Supply & Demand, Business & Labor Test Review

 30 Multiple Choice  20 Matching (Economics Review Terms – Honors Only)  Supply & Demand Graph

Supply & Demand  Demand, Law of Demand, Determinants of Demand, elastic/inelastic demand

 Supply, Law of Supply, Determinants of Supply, elastic/inelastic supply

 Substitute goods, complementary goods, market price/equilibrium price

 Shortage, surplus Business & Labor

 Types of Business Organizations – Know Characteristics of Each

 Sole Proprietorship (+,-), unlimited liability, limited life

 Partnership (+,-), Articles of Partnership

 Corporation (+,-), limited liability, unlimited life, stock, stockholders, board of

directors, charter

 Cooperative (+,-)

 Collective Bargaining, Mediation, Arbitration

 Strike, Picketing, Boycott, Lockout

Graphing Supply & Demand (Practice) Label the schedules below either Supply or Demand. 1) ______2) ______Price Quantity Price Quantity $20 140 $20 20 $30 125 $30 35 $40 105 $40 60 $50 80 $50 85 $65 70 $65 110 $70 40 $70 140 On a sheet of graph paper, set up the graph above. Label the following. Demand Curve (D). Supply Curve (S). Market Price – Give the price and the quantity.

 If demand increases, price will ______. Graph change: Label D1.  If demand decreases, price will ______. Graph change: Label D2.  If supply increases, price will ______. Graph change: Label S1.  If supply decreases, price will ______. Graph change: Label S2.

SUPPLY & DEMAND TEST GRAPH

Part 1: Label the schedules below either Supply or Demand.

1) ______2) ______

Price Quantity Price Quantity

$40 150 $40 20

$50 135 $50 35

$60 115 $60 55

$70 95 $70 80

$75 70 $75 110

$80 40 $80 150

Part 2: On the back of this sheet of paper, set up the graph above. Label the following.

Demand Curve (D). Supply Curve (S).

Market Price – Give the price and the quantity.

Part 3: Answer the following questions. Graph & Label Changes.

 If demand increases, price will ______.

Graph change: Label D1.

 If demand decreases, price will ______.

Graph change: Label D2.

 If supply increases, price will ______.

Graph change: Label S1.

 If supply decreases, price will ______.

Graph change: Label S2.