Cartoon: #4
Be sure by the end of this part of the course you can explain the cartoon below. How does it relate to society now?
Learning Goals: For students to demonstrate their understanding of supply and demand. |
Success Criteria:
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Group Review: Reviewing Supply and Demand
Individually or with a group of students in a Google Doc, complete the below review. Each group should show me one completed review.
2. Changes in Supply and Demand
Answer the following:
a) What situations might cause a change in demand for beer as shown in the above graph?
b) What situation might cause a change in the supply for beer and shown in the above graph?
c) What happens to the equalibrium price in each case?
d) What would the firm's response be in each case?
e) Consider the following situations and draw a small free hand graph to illustrate the changes in the following situations:
- A new school opens across the road. Tim Horton's Coffee sales will?
- A really bad storm damages oil rigs in Mexico. Oil supply will?
- Less people are interested in buying Lululemon because its not popular anymore.
a) What situations might cause a change in demand for beer as shown in the above graph?
b) What situation might cause a change in the supply for beer and shown in the above graph?
c) What happens to the equalibrium price in each case?
d) What would the firm's response be in each case?
e) Consider the following situations and draw a small free hand graph to illustrate the changes in the following situations:
- A new school opens across the road. Tim Horton's Coffee sales will?
- A really bad storm damages oil rigs in Mexico. Oil supply will?
- Less people are interested in buying Lululemon because its not popular anymore.
Unit 2.3: Supply and Demand - Elasticity
Learning Goals: For students to be able to apply laws of supply and demand to elasticity. |
Success Criteria:
1. Students can apply elasticity of Demand and Supply. 2. Students can explain how happiness relates to economics. |
Together we will go through the lesson and complete some practice.
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Elasticity Applications
1. Visit the following link and read the article. Be prepared to explain how Elasticity and changes in supply and demand relate to Michael Kors. 2. View the Canadian Crude Index of oil prices from May 2017 to Jan 2022 and read the CBC article linked here. How does it demonstrate elasticity of demand? Explain. 3. Superfreakonomics Essay: How can the concepts of supply and demand elasticity apply to your essay? You do not have to include this in your thesis or essay, it is just something to think about. |
Unit 2.4 - Utility
Learning Goals: Students can explain the relationship between utility and purchases made. |
Success Criteria:
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Review the concept of Utility as it relates to consumers below by watching the videos.
a) Watch the below video and then in your own words explain the philosophy of utilitarianism. Provide a real example from the world today.
b) Read about different types of utilitarianism.
Like any philosophical theory, utilitarianism can be as simple or as complicated as you like. For our purposes we are concerned with why a consumer and why a producer performs an act. All consumers to an extent are utilitarians, but what type of utilitarian are you? Read the Act and Rule utilitarianism linked here. Then click, "What are the differences between Act and Rule Utilitarianism". Read that short section.
1. What is the main difference between Act and Rule Utilitarianism? Which do you prefer?
2. How does the idea behind utilitarianism, utility, fit into economics do you think? Reflect on why you buy things.
Like any philosophical theory, utilitarianism can be as simple or as complicated as you like. For our purposes we are concerned with why a consumer and why a producer performs an act. All consumers to an extent are utilitarians, but what type of utilitarian are you? Read the Act and Rule utilitarianism linked here. Then click, "What are the differences between Act and Rule Utilitarianism". Read that short section.
1. What is the main difference between Act and Rule Utilitarianism? Which do you prefer?
2. How does the idea behind utilitarianism, utility, fit into economics do you think? Reflect on why you buy things.
The Law of Diminishing Marginal Utility
Review: What was the law of Diminishing Returns again?
"Utility" is an economic term introduced by Daniel Bernoulli referring to the total satisfaction received from consuming a good or service. The economic utility of a good or service is important to understand because it will directly influence the demand, and therefore price, of that good or service. A consumer's utility is hard to measure, however, but it can be determined indirectly with consumer behavior theories, which assume that consumers will strive to maximize their utility. (Source: Investopedia)
Review: What was the law of Diminishing Returns again?
"Utility" is an economic term introduced by Daniel Bernoulli referring to the total satisfaction received from consuming a good or service. The economic utility of a good or service is important to understand because it will directly influence the demand, and therefore price, of that good or service. A consumer's utility is hard to measure, however, but it can be determined indirectly with consumer behavior theories, which assume that consumers will strive to maximize their utility. (Source: Investopedia)
Watch the below video. What is another example besides food from your life where you experience the Law of Diminishing Marginal Utility? How do you think producers cope with this?
Look at the two graphs above. What is the relationship between total utility and marginal utility?