Download - Demand and Supply. Main idea: Demand includes only those people who are willing and able to buy
Chapter 7 Section 1: Demand
Main idea: Demand includes only those people who are willing and able to buy.
Demand Supply Market Voluntary exchange Law of demand Quantity demanded Real income effect Substitution effect Utility Marginal utility Law of diminishing marginal utility
Vocabulary
What is demand? What does the law of demand state? The three factors that explain the inverse
relationship between quantity demanded and price include: A. B. C.
Notes
Chapter 7 section 2: The Demand
Curve and Elasticity of
Demand
Main Idea: Prices go up and down depending on demand.
Demand schedule Demand curve Complementary good Elasticity Price elasticity of demand Elastic demand Inelastic demand
vocabulary
What does a downward sloping demand curve
signify? What factors affect demand? What does it mean for the demand for a good
to be “elastic” or “inelastic”?
Notes
Chapter 7 Section 3: Law of Supply and Supply Curve
Main idea: The law of supply is geared towards making profits
Law of supply Quantity supplied Supply schedule Supply curve Technology Law of diminishing returns
vocabulary
What does the law of supply say about the
quantity supplied? What does an upward sloping supply curve
show? What 4 factors determine supply in a market
economy?
Notes
Chapter 7 Section 4: Putting Supply
and Demand Together
Main Idea: Shortages occur when the quantity demanded is larger than the quantity supplied at the current price.
What do prices serve as in a free enterprise
system? How does a shortage affect prices? How do surpluses affect prices? How does a price ceiling affect supply? How does a price floor effect things like
minimum wage?
Notes
Chapter 8 Section 1: Starting a
Business
Main Idea: You can take your ideas and start your own business.
Why do people start their own businesses? How can those people get help? What basic elements must every business
consider?
Notes
Chapter 8 Section 2: Sole
Proprietorships and Partnerships
Main Idea: The two most common ways to organize business is sole
proprietorships and partnerships.
Sole proprietorship Proprietor Unlimited liability Assets Partnership Limited partnership Joint venture
Vocabulary
What is the most basic business organization? What are the advantages of sole
proprietorships? What are the disadvantages of sole
proprietorships? What does a legally binding partnership
agreement do? What are the advantages and disadvantages
of a limited partnership?
Notes
Chapter 8 section 3: The Corporate
World and Franchises
Main idea: Corporations disperse profit to shareholders
Corporation Stock Limited liability Articles of incorporation Corporate charter Common stock Dividend Preferred stock franchise
vocabulary
What rights do corporations have? What is the major advantage of a corporation? What is a major disadvantage of a
corporation? How is a corporation formed? How do franchises work?
Notes
Chapter 9 Section 1: Perfect
Competition
Main Idea: Suppliers want as little competition as possible.
What are the 4 basic market structures in the
United States? Describe perfect competition: How are agricultural products described as
perfect competition? How does society benefit from perfect
competition?
Notes
Chapter 9 Section 2: Monopoly, Oligopoly,
Monopolistic Competition
Main Idea: Advertising plays a major role in two types of market structures.
Monopoly Barriers to entry Economies of scale Patent Copyright Oligopoly Product differentiation Cartel Monopolistic competition
Vocabulary
How is a monopoly protected? What are the 4 types of monopolies? What are the advantages of Natural
Monopolies? How do competitors use product
differentiation? Why is advertising important?
Notes
Chapter 9 Section 3: Government Policies Toward
Competition
Main Idea: The US supports competition in the economy.