<p> Unit 2: Supply & Demand, Business & Labor</p><p>Goals – 7.01, 8.01-8.08, 9.03</p><p>Unit Essential Questions</p><p>1) How does the consumer drive the economy?</p><p>2) How do the forces of supply and demand lead to efficient use of resources?</p><p>3) How do business organizations help to grow the economy?</p><p>4) What role does profit play in business activity?</p><p>5) How have the rights of workers transformed in the United States? UNIT PACING</p><p>Day 1: (8.04)</p><p> Law of Demand </p><p> Law of Supply</p><p>Day 2: (8.05,8.06,9.03)</p><p> Market Price</p><p> Changes in Supply & Demand</p><p>Day 3: (7.01,8.07,8.08) </p><p> Business Organizations - Sole Proprietorship, Partnership, </p><p>Corporation, Non-Profit Organization</p><p> Review Business Organizations</p><p> Is Wal-Mart Good for America?</p><p>Day 4: (7.01,8.07,8.08)</p><p> Quiz: Types of Business Organizations</p><p> Types of Workers – Labor Unions</p><p> Video: The Rise of Labor</p><p>Day 5:</p><p>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 </p><p>PART 1 – SUPPLY & DEMAND Chapter 21, Section 1 (pgs. 569-572)</p><p>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?</p><p>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?</p><p>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)</p><p>Define the Following  Equilibrium Price  Surplus  Shortage  Price Controls  Price Ceiling  Price Floor</p><p>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</p><p>Supply & Demand Unit</p><p>Lesson 1: The Law of Demand - Class Questions</p><p>1) How many of you would be willing to buy a doughnut at the </p><p> following prices?</p><p>(.30, .40, .50, .60, .70, .80)</p><p>2) How many doughnuts would be bought at the following prices? </p><p>(.55, .75)</p><p>3) What does the demand curve tell us about the relationship </p><p> between price and demand?</p><p>4) What would you do if you thought the price of doughnuts was too </p><p> high?</p><p>5) Based on your observations, what is the law of demand? Lesson 2: The Law of Supply - Class Questions</p><p>1) What people are involved in supplying doughnuts?</p><p>2) What would you do if you thought people would pay a high price </p><p> for doughnuts?</p><p>3) What would you do if you thought people would only pay a small </p><p> price for doughnuts?</p><p>4) How many would you produce at the following prices? </p><p>(.30, .40, .50, .60, .70, .80)</p><p>5) About how many would be sold at the following prices? (.55, .75)</p><p>6) What does the supply curve tell us about the relationship between </p><p> price and supply?</p><p>7) Based on your observations, what is the law of supply?</p><p>Lesson 3: Market Price, Changes in Supply & Demand</p><p>1) What does the point where the supply curve and the demand curve</p><p> intersect represent?</p><p>2) If another class began selling doughnuts in school, what effect </p><p> would this have on supply? Graph Change, Label S1</p><p>3) Suppose Krispy Kreme had a shortage of dough, thus our class </p><p> could only get a limited number of boxes. What effect would this </p><p> have on supply? Graph Change, Label S2</p><p>4) Suppose it is late May, and our class is selling doughnuts. Another</p><p> class began selling ice cream. What effect would this have on </p><p> demand, and why? Graph Change, Label D1</p><p>5) Suppose we were the only class at school selling snack items. </p><p>What effect would this have on demand? Graph Change, Label D2</p><p>6) What effect would each of these have on price? Unit 2 – Business and Labor NCSCOS – 8.07</p><p>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</p><p>Disadvantages</p><p>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)</p><p>Define the Following  Civilian Labor Force  Labor Union  Craft Union  Industrial Union  Local Unions  National Unions  AFL-CIO</p><p>Define the Following Negotiation Tactics  Collective Bargaining  Mediation  Arbitration</p><p>Define the Following Labor Union Tactics  Strike  Boycott  Picketing</p><p>Define the Following Management Tactics  Injunction  Lockout</p><p>Define the Following Union and Management Agreements (p. 610)  Closed Shops  Union Shops  Modified Union Shops  Agency Shops</p><p>Define each Government Action  Clayton Act (1914)  Taft-Hartley Act (1947)  Right-to-Work Laws  National Labor Relations Board Types of Business Organizations Quiz</p><p>1) What is the least common form of business organization?</p><p>2) What is the most difficult form of business organization to establish?</p><p>3) This type of business organization involves the least amount of risk to the </p><p> owner.</p><p>4) The easiest type of business to organize.</p><p>5) When courts can seize property to satisfy claims against a firm or business.</p><p>6) The term that describes the need to reorganize a business when an owner dies.</p><p>7) The advantage of this type of business is that it has limited liability and </p><p> unlimited life.</p><p>8.9) Corporations can be formed by the sale of these (2) items.</p><p>10) What is a non-profit organization? Types of Workers – Labor Unions</p><p>1) This type of worker is involved in manufacturing or non-farm labor.</p><p>2) Person who has learned a trade or craft either through a vocational school or </p><p> as an apprentice.</p><p>3) When a third party is brought in to help in a contract dispute. The decision is </p><p> not final.</p><p>4) When a third party is brought in to help in a contract dispute. The decision is </p><p> final.</p><p>5) When workers decide to stop working until their demands are met in a contract </p><p> dispute.</p><p>6) An organization of workers that try to improve wages and working conditions for</p><p> their members.</p><p>7) When workers encourage the public to not buy products or services of a </p><p> particular party. (Think colonies 1700’s)</p><p>8) Laws passed by state governments to prevent certain types of labor union </p><p> organizations (closed shops, union shops). 9) When a business closes the doors to the business until workers agree to a </p><p> contract. Unit 2 & 3 – Supply & Demand, Business & Labor Test Review</p><p> 30 Multiple Choice  20 Matching (Economics Review Terms – Honors Only)  Supply & Demand Graph</p><p>Supply & Demand  Demand, Law of Demand, Determinants of Demand, elastic/inelastic demand</p><p> Supply, Law of Supply, Determinants of Supply, elastic/inelastic supply</p><p> Substitute goods, complementary goods, market price/equilibrium price</p><p> Shortage, surplus Business & Labor</p><p> Types of Business Organizations – Know Characteristics of Each</p><p> Sole Proprietorship (+,-), unlimited liability, limited life</p><p> Partnership (+,-), Articles of Partnership</p><p> Corporation (+,-), limited liability, unlimited life, stock, stockholders, board of</p><p> directors, charter</p><p> Cooperative (+,-)</p><p> Collective Bargaining, Mediation, Arbitration</p><p> Strike, Picketing, Boycott, Lockout</p><p>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. </p><p> 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.</p><p>SUPPLY & DEMAND TEST GRAPH</p><p>Part 1: Label the schedules below either Supply or Demand.</p><p>1) ______2) ______</p><p>Price Quantity Price Quantity</p><p>$40 150 $40 20</p><p>$50 135 $50 35</p><p>$60 115 $60 55</p><p>$70 95 $70 80</p><p>$75 70 $75 110</p><p>$80 40 $80 150</p><p>Part 2: On the back of this sheet of paper, set up the graph above. Label the following.</p><p>Demand Curve (D). Supply Curve (S).</p><p>Market Price – Give the price and the quantity. </p><p>Part 3: Answer the following questions. Graph & Label Changes. </p><p> If demand increases, price will ______.</p><p>Graph change: Label D1.</p><p> If demand decreases, price will ______.</p><p>Graph change: Label D2.</p><p> If supply increases, price will ______.</p><p>Graph change: Label S1.</p><p> If supply decreases, price will ______.</p><p>Graph change: Label S2. </p>