Antes de empezar What rule are these pictures trying to convey? 1 2 3 4 5.
Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each?...
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Transcript of Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each?...
![Page 1: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/1.jpg)
How do prices act as signals for consumers and
producers?
Go Ahead…Take A Guess!!
![Page 2: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/2.jpg)
Prices convey information to both. What do high and low prices tell
each? Prices help answer the (3)
economic questions
What do prices do?
![Page 3: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/3.jpg)
1. They don’t favor either party –
they result because of competition Why can’t Chicken Run charge
$500 for chicken fingers?
IMPORTANT INFORMATION ABOUT PRICES
![Page 4: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/4.jpg)
2. They are flexible – allows for
change
Disasters, weather, war effect price and people adjust
This is most often seen with products with which type of demand?
I don’t have anything to write up here
![Page 5: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/5.jpg)
3. They provide choice – if they
become too high, people can go elsewhere
Don’t have anything for here either
![Page 6: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/6.jpg)
4. Markets find their prices without
outside help Government does get involved
as we will see
Thought I had something for here…but I don’t
![Page 7: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/7.jpg)
5. Prices are efficient – people can
make decisions about purchases and behavior quickly
Example: Hong Kong tolls
Here’s number 5
![Page 8: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/8.jpg)
What system could be used to
allocate resources without prices?
What are the problems with this system?
Review
![Page 9: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/9.jpg)
Draw a supply curve and demand
curve on the same graph. Label everything. Find a point on the graph that
represents the price and quantity that should be charged.
Label that point “E”.
So how do we get to a price?
![Page 10: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/10.jpg)
What is point E called?
![Page 11: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/11.jpg)
What happens if price falls above
this point? What happens if price falls below
this point? How do shifts in Demand and
Supply effect quantity and price?
The big questions:
![Page 12: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/12.jpg)
This price leaves me too many - SURPLUS
![Page 13: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/13.jpg)
This price leaves me too few - SHORTAGE
![Page 14: Go Ahead…Take A Guess!!. Prices convey information to both. What do high and low prices tell each? Prices help answer the (3) economic questions What.](https://reader035.fdocuments.us/reader035/viewer/2022070306/5519905255034653068b45e4/html5/thumbnails/14.jpg)
This one is just right!