Free enterprise system is an economy where anybody can start a business.
By cntrast, the government sets prices, and tells people where they can work and how much money they earn, is command economy.
Free market economy, millions of entrepreneurs and consumers make millions of econimic desicion everday.
People making economic desisions everyday is efficiency.
Efficiency is desired results are obtained with limited resources.
In a free market changes in prices send signals to entrepereneurs.
According to law and demanded, as a price goes up the quantity demanded by consumers will go down.
A supplier reacts to price change.
Market clearing price is the point at which supply and demand likes cross.
VOCABULARY
Free Enterprise system- Is where any man/women can start a free business in the economy.
Capitalism- Is where people are free to spend there money however they want to use it.
Command economy- Where people work, how much they earn and what the prices are all depend on what the government chooses.
Supply and Demand- Where the price of a product is generally determined by the law.
Market Clearing Prices- Where supply and demand crosses the line.
Monopoly- Where one supplier of a product or service in a market. The supplier does not have to compete to attract customers.
Competition- It encourages lower prices and higher quality.
CRITICAL THINKING
1. A product that I stopped buying when the price went up even just a little was drinks at a football game. The price was $1.00 and it increased to $1.50. I stop buying drinks at the football games because of the price increase and how big the cup is. Another product that the price increase and i still wanted to buy was Chicken Mcnuggets at McDonald's. It cost $5.00 and is still $5.00 for like 20 pieces. I still buy it because it is a good variety and it is very good
2. The product I would like to sell would be customized jackets. The factors that would affect the demand would be how much the jackets would cost and how good the design would be. The factor that would affect the supply would be how many customized jackets i made an how many varieties of designs are there on the jackets.
3. #1:
#2: The message that is being given in this situation is competition. It is giving the message of competition because there is a new club down the street which is attracting the old clubs customers. So the old club is lowering there prices to see if they can get there customers back. So the message they would be giving is competition.
KEY CONCEPTS
1. The prices of air conditioners would go down. The price would go dowin becuse it is winter and the people would use less of the air conditioning.
2. If we all started using electric cars the demand of gasoline would go down because people would not be using gas. The people would be using electric cars.
3. If people use an electric car the availability of of gasoline would high and the price of gasoline would go down because people would not be using gas powered cars.
4. Monopoly people can charge on any price because the supplier does not have to comptete to attract customers. The cutsomers have no choice but to go to that supplier. Monopolies can start a free enterprise system because they last longer in the business field, because they can change the prices and change the quality of the product.
5.
ARTICLE
The article that i found that related to supply and demand was gasoline. In the article it tells how gas is to high and how were to blame for it. They say that the middle east and South America is somewhat to blmae for high prices of gasoline. But really, it is our fault for having such high gas prices. The demand of gas is shooting at a high rate from many diffrent countries, thats why gas preices are so high due to the demand of gas.
VOCABULARY
CRITICAL THINKING
1. A product that I stopped buying when the price went up even just a little was drinks at a football game. The price was $1.00 and it increased to $1.50. I stop buying drinks at the football games because of the price increase and how big the cup is. Another product that the price increase and i still wanted to buy was Chicken Mcnuggets at McDonald's. It cost $5.00 and is still $5.00 for like 20 pieces. I still buy it because it is a good variety and it is very good
2. The product I would like to sell would be customized jackets. The factors that would affect the demand would be how much the jackets would cost and how good the design would be. The factor that would affect the supply would be how many customized jackets i made an how many varieties of designs are there on the jackets.
3. #1:
#2: The message that is being given in this situation is competition. It is giving the message of competition because there is a new club down the street which is attracting the old clubs customers. So the old club is lowering there prices to see if they can get there customers back. So the message they would be giving is competition.
KEY CONCEPTS
1. The prices of air conditioners would go down. The price would go dowin becuse it is winter and the people would use less of the air conditioning.
2. If we all started using electric cars the demand of gasoline would go down because people would not be using gas. The people would be using electric cars.
3. If people use an electric car the availability of of gasoline would high and the price of gasoline would go down because people would not be using gas powered cars.
4. Monopoly people can charge on any price because the supplier does not have to comptete to attract customers. The cutsomers have no choice but to go to that supplier. Monopolies can start a free enterprise system because they last longer in the business field, because they can change the prices and change the quality of the product.
5.
ARTICLE
The article that i found that related to supply and demand was gasoline. In the article it tells how gas is to high and how were to blame for it. They say that the middle east and South America is somewhat to blmae for high prices of gasoline. But really, it is our fault for having such high gas prices. The demand of gas is shooting at a high rate from many diffrent countries, thats why gas preices are so high due to the demand of gas.
URL: http://www.nd.edu/~lumen/2007_05/Supplyanddemanddrivinggasprices.shtml