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Last Slide Viewed ForwardBack End ShowResourcesTitle PageTable of Contents Copyright © 2012 N.S. Two Types of Goods Goods (and services) fall into one of two categories. Items that people tend to buy more of when their incomes increase. This is true of most goods and services. Definition See Examples 1) Normal Goods2) Inferior Goods
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Analyzing the Market
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Two Types of GoodsGoods (and services) fall into one of two categories.
1) Normal Goods 2) Inferior Goods
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Copyright © 2012 N.S.
Two Types of GoodsGoods (and services) fall into one of two categories.
Items that people tend to buy more of when their incomes increase. This is true of most goods and services.
Definition
See Examples
1) Normal Goods 2) Inferior Goods
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Two Types of GoodsGoods (and services) fall into one of two categories.
Items that people tend to buy more of when their incomes increase. This is true of most goods and services.
Definition
A) New CarsB) Coca-Cola or PepsiC) TelevisionsD) Clothes
Examples
1) Normal Goods 2) Inferior Goods
What example
s can you
think of?
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Two Types of GoodsGoods (and services) fall into one of two categories.
Items that people purchase more of when their incomes decrease. These items tend to be low-cost options for saving money.
Definition
See Examples
1) Normal Goods 2) Inferior Goods
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Two Types of GoodsGoods (and services) fall into one of two categories.
Items that people purchase more of when their incomes decrease. These items tend to be low-cost options for saving money.
Definition
A) Ramen NoodlesB) Frozen DinnersC) Bus TransportationD) Used Clothes
Examples
1) Normal Goods 2) Inferior Goods
What example
s can you
think of?
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Related GoodsSometimes goods (or services) are related to each other in one of two special
ways.1) SubstituteGoods
2) ComplementaryGoods
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Related GoodsSometimes goods (or services) are related to each other in one of two special
ways.1) SubstituteGoods
2) ComplementaryGoods
Items that may replace each other when used or consumed.
Definition
See Examples
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Related GoodsSometimes goods (or services) are related to each other in one of two special
ways.1) SubstituteGoods
2) ComplementaryGoods
Items that may replace each other when used or consumed.
Definition
A) Butter . . . . . . . . . . Margarine
B) McDonald’s . . . . . Burger King
Examples
What examples can you think of?
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Related GoodsSometimes goods (or services) are related to each other in one of two special
ways.1) SubstituteGoods
2) ComplementaryGoods
Items that are almost always consumed or used together.
Definition
See Examples
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Related GoodsSometimes goods (or services) are related to each other in one of two special
ways.1) SubstituteGoods
2) ComplementaryGoods
Items that are almost always consumed or used together.
Definition
A) Hot Dogs . . . . . Hot Dog Buns
B) Toothbrush . . . . Toothpaste
Examples
What examples can you think of?
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Economic Time FramesThere are two ambiguous time frames that economists use to analyze a
market.1) Short Run 2) Long Run
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Economic Time FramesThere are two ambiguous time frames that economists use to analyze a
market.1) Short Run 2) Long Run
An undefined period of time that is NOT long enough to allow consumers or producers enough time to adjust to all changes in an economic situation.
Definition
See Example
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Economic Time FramesThere are two ambiguous time frames that economists use to analyze a
market.1) Short Run 2) Long Run
Suppose Coca-Cola Vanilla becomes extremely popular. Coca-Cola cannot increase its output immediately to accommodate demand because it takes time to adjust to the new demand.
Example
An undefined period of time that is NOT long enough to allow consumers or producers enough time to adjust to all changes in an economic situation.
Definition
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Economic Time FramesThere are two ambiguous time frames that economists use to analyze a
market.1) Short Run 2) Long Run
An undefined period of time that is long enough for people to adjust to all changes in an economic situation.
Definition
See Example
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Economic Time FramesThere are two ambiguous time frames that economists use to analyze a
market.1) Short Run 2) Long Run
An undefined period of time that is long enough for people to adjust to all changes in an economic situation.
Definition
On the other hand, Coca-Cola Vanilla can increase its production in the long run by opening new factories and by locating additional raw materials.
Example
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Identifying Markets
Example 1
Example 2
When analyzing a market, it is always important to know which market you are talking about!
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Identifying MarketsWhen analyzing a market, it is always important to know which market you are
talking about!
Which market is this? ?
Example 2
Example 1
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Identifying MarketsWhen analyzing a market, it is always important to know which market you are
talking about!
Example 2
Which market is this?Oranges?Orange Juice?Navel Oranges?
Example 1
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Identifying MarketsWhen analyzing a market, it is always important to know which market you are
talking about!
Example 1
Which market is this? ?
Example 2
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Identifying MarketsWhen analyzing a market, it is always important to know which market you are
talking about!
Example 1
Which market is this?Shoes?Women’s Shoes?High Heels?
Example 2
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A Market GraphEach graph you draw will contain each of the following items.
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A Market GraphEach graph you draw will contain each of the following items.
1) Title of the market Market for High Heels
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A Market GraphEach graph you draw will contain each of the following items.
1) Title of the market
2) Price range on the vertical axis (y-axis)
$0$10$20$30$40$50$60$70 Market for High Heels
Price
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A Market GraphEach graph you draw will contain each of the following items.
1) Title of the market
2) Price range on the vertical axis (y-axis)
$10$20$30$40$50$60$70 Market for High Heels
3) Quantity on the horizontal axis (x-axis)
Quantity0 25 50 75 100 125 150175$0
Price
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Creating a GraphThis unit will require us to draw several market graphs. Follow these steps.
$10$20$30$40$50$60$70 Market for High Heels
Quantity0 25 50 75 100 125 150175$0
Price
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Creating a GraphThis unit will require us to draw several market graphs. Follow these steps.
1) Plot data points using provided information
$10$20$30$40$50$60$70 Market for High Heels
Quantity0 25 50 75 100 125 150175$0
Price
See Data
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Creating a GraphThis unit will require us to draw several market graphs. Follow these steps.
1) Plot data points using provided information
$10$20$30$40$50$60$70 Market for High Heels
Quantity0 25 50 75 100 125 150175$0
PricePrice ($) Quantity
$20
$30
$40
$50
50
75
100
125
Plot Data
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Creating a GraphThis unit will require us to draw several market graphs. Follow these steps.
1) Plot data points using provided information
$10$20$30$40$50$60$70 Market for High Heels
Quantity0 25 50 75 100 125 150175$0
PricePrice ($) Quantity
$20
$30
$40
$50
50
75
100
125
Last SlideViewed ForwardBack
End ShowResourcesTitle Page Table of Contents
Copyright © 2012 N.S.
Creating a GraphThis unit will require us to draw several market graphs. Follow these steps.
1) Plot data points using provided information
$10$20$30$40$50$60$70 Market for High Heels
Quantity0 25 50 75 100 125 150175$0
PricePrice ($) Quantity
$20
$30
$40
$50
50
75
100
125
2) Connect data points with a line
