Free Enterprise-Its an economy in which anyone can start a business.
Capitalism-Where people are allowed to use their capital money however they choose.
Command economy-The government sets prices then tells people where they should work.
Supply and Demand- the more of the supply of a product the less demand, tthe higher demand the less of the supply.
Market Clearing Price-The point where supply and demand meet an equal.
Competition-Where businesses with the same product try to make the consumer want their product more then other businesses.
Monopoly-When there is only one supplier of o product.
Critical Thinking:
1. Yes, if the price is no longer worth the loss of money. Well, there is only one product that I would consider necessary even if the price kept raising to the point of stupidity, that would be water.
2. I would like to sell hats as my product. The current supply for hats is pretty high, but with the correct advertising and marketing it could be ran as a steady business. It might not ever reach a really high income but it could potentially bring in a steady stream of money.
3. In the first scenario the market is hinting that you should work less on the soy beans and focus more on the dairy cows. In scenario two the market is having a higher demand for disco clubs so you should join in or wait it out for the next big thing and try to be the first to get it.
Key Concepts:
1. The price of air conditioners is likely to go down because they are going to be on less of a demand due to the season change.
2. The price of gasoline would drop dramatically because the high demand is being put into electric cars.
3. Electric cars would lessen the availibility of gas and cause it to be really expensive because of the rarity or dirt cheap because of the low demand and accessibilty to large amounts of it.
4. A monopoly can set any price they want because they are the only business with the product which means no competition to deal with. Monopolies are illegal and are not allowed in a free market.
5. Franklin uses the laws of supply and demand for his product on how much of the product he needs and how much he expects to get in return.
Free Enterprise-Its an economy in which anyone can start a business.
Capitalism-Where people are allowed to use their capital money however they choose.
Command economy-The government sets prices then tells people where they should work.
Supply and Demand- the more of the supply of a product the less demand, tthe higher demand the less of the supply.
Market Clearing Price-The point where supply and demand meet an equal.
Competition-Where businesses with the same product try to make the consumer want their product more then other businesses.
Monopoly-When there is only one supplier of o product.
Critical Thinking:
1. Yes, if the price is no longer worth the loss of money. Well, there is only one product that I would consider necessary even if the price kept raising to the point of stupidity, that would be water.
2. I would like to sell hats as my product. The current supply for hats is pretty high, but with the correct advertising and marketing it could be ran as a steady business. It might not ever reach a really high income but it could potentially bring in a steady stream of money.
3. In the first scenario the market is hinting that you should work less on the soy beans and focus more on the dairy cows. In scenario two the market is having a higher demand for disco clubs so you should join in or wait it out for the next big thing and try to be the first to get it.
Key Concepts:
1. The price of air conditioners is likely to go down because they are going to be on less of a demand due to the season change.
2. The price of gasoline would drop dramatically because the high demand is being put into electric cars.
3. Electric cars would lessen the availibility of gas and cause it to be really expensive because of the rarity or dirt cheap because of the low demand and accessibilty to large amounts of it.
4. A monopoly can set any price they want because they are the only business with the product which means no competition to deal with. Monopolies are illegal and are not allowed in a free market.
5. Franklin uses the laws of supply and demand for his product on how much of the product he needs and how much he expects to get in return.