Chapter 2 Olivia Wyffels

Entrepreneurs have to satisy the needs and wants of the economy

Want or Need?

Need: Things that you must have in order to survive.

Want: Thing you think you must have in order to be satisfied.

How economic decisions are made

Ask these questions: What goods and services will be produced? How will they be produced? What needs and wants will be satisfied with the goods and services produced?

Command Economy: When the government determines what, how, and for whom products and services are produced.

Market Economy: When individuals and businesses decide what, how, and for whom goods and services are produced.

Traditional Economy: When goods and services are produced the way they have always been produced.

What effects the price of the product in the economy and how the Manufacturers have to keep up with supply and demand

Black Friday Shopping Example: When Demand is high and Supply is low.
Example of when the supply is high, but the demand is low.

Supply: Is how much of a good service a producer is willing to produce at different prices.

Demand: Is an individual's need or desire for a product or service at a given price.

Equilibrium Price and Quantity: It is the point at which the supply and demand curves meet.

Credits:

Created with images by geralt - "arrows trend businesswoman"

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