introduction to economics lesson 3 demand and supply...
TRANSCRIPT
Guided Reading
NAME _____________________________________________ CLASS ________________ DATE _____________
netw rksIntroduction to Economics
Lesson 3 Demand and Supply in a Market Economy
Demand and Supply Make Markets1. Identifying Use the graphic organizer to answer these
questions: The desires of what two groups fuel a market economy? In a market economy, what two forces interact to determine price?
Desires
Price
2. Defining As you read, look for the four key parts of demand. Then complete the sentence to define demand.
Demand is the (1) of a good or service that consumers are (2) and are (3) at a certain (4) .
ESSENTIAL QUESTIONS• Why and how do people make economic
choices?• How do economic systems influence
societies?
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Guided Reading
NAME _____________________________________________ CLASS ________________ DATE _____________
netw rks
NAME _____________________________________________ CLASS ________________ DATE _____________
Introduction to Economics
3. Explaining Supply is the opposite of demand. As you read, complete the chart to show how producers respond to the changing prices of goods and services.
4. Describing Supply and demand change as prices move up or down. Complete the sentences to show those changes.
As price goes up .
As demand goes up .
5. Comparing As you read, complete the chart by taking notes on the relationship between equilibrium price, surplus, and shortage.
Price and Supply
If . . . then . . .
the price of a good or service goes up
producers
the price of a good or service goes down
producers
Equilibrium Price Surplus Shortage
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Guided Reading
NAME _____________________________________________ CLASS ________________ DATE _____________
netw rks
NAME _____________________________________________ CLASS ________________ DATE _____________
Introduction to Economics
6. Listing Complete the diagram by showing the factors that affect demand.
Factors Affecting Demand
7. Summarizing Events that cause breaks in supply tend to drive prices up. As you read, complete the chart to describe what happens when two other factors affect supply.
Factors Affecting Supply
goes up . . . goes down . . .
Number of suppliers
goes up . . . goes down . . .
Cost of production
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Guided Reading
NAME _____________________________________________ CLASS ________________ DATE _____________
netw rks
NAME _____________________________________________ CLASS ________________ DATE _____________
Introduction to Economics
The Economic Role of Prices8. Analyzing As you read, complete the graphic organizer.
Explain how price answers the three basic economic questions in a market economy.
Economic Questions
Q: What to produce? A.
Q: How to produce? A.
Q: For whom to produce? A.
9. Applying Price can be used to measure the value of different goods and services. Give an example of how price acts as a measure of value.
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Guided Reading
NAME _____________________________________________ CLASS ________________ DATE _____________
netw rks
NAME _____________________________________________ CLASS ________________ DATE _____________
Introduction to Economics
10. Organizing As you read, complete the flowcharts to show how price can act as a signal.
Consumers think the price is too high.
Consumers will not buy the product or service.
Signal:
There is a lack of demand.
Producers respond to signal by
Consumers cannot find a good or service at the low price they want to pay.
Consumers must recognize that producers are not willing to offer it at such a low price.
Signal:
Consumers adjust to the signal from producers by
11. Generalizing As you read, complete the web diagram to answer the following question. In a command economy, who sets the prices and answers the three basic economic questions?
What to Produce?
How to Produce?
For Whom to
Produce?
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