The Business Environment
What is economics?
Objectives
a. Define the following terms: price, relative prices, substitution effect, rationing, equilibrium price,
excess supply, excess demand, and market price.
b. Explain the importance of price in business.
c. Explain the significance of relative prices to businesses and to consumers.
d. Identify an example of the change in relative prices of two products.
e. Identify an example of the change in prices that does not result in a change in relative prices.
f. Explain how customers react to changes in relative price.
g. Discuss the relationship of relative prices to the three economic questions.
h. Describe the functions of relative prices.
i. Explain the use of relative prices in making purchase decisions.
j. Explain how prices are determined.
k. Explain how producers respond to excess supply.
l. Explain how producers respond to excess demand.
- Describe the functions of prices in markets
Objectives
a. Define the following terms: price, relative prices, substitution effect, rationing, equilibrium price,
excess supply, excess demand, and market price.
b. Explain the importance of price in business.
c. Explain the significance of relative prices to businesses and to consumers.
d. Identify an example of the change in relative prices of two products.
e. Identify an example of the change in prices that does not result in a change in relative prices.
f. Explain how customers react to changes in relative price.
g. Discuss the relationship of relative prices to the three economic questions.
h. Describe the functions of relative prices.
i. Explain the use of relative prices in making purchase decisions.
j. Explain how prices are determined.
k. Explain how producers respond to excess supply.
l. Explain how producers respond to excess demand.
Articles
Videos
VCE economics unit 3 lesson 4: Relative
prices
prices
Ethics Case - Colby
Look up an article that is within the last 5 years about the high cost of medication in the US. You will share a summary of this article with the class.
Colby works for a pharmaceutical company and is in charge of pricing strategy. His company just received a patent for a new medication. Since it is the only company that is allowed to make and sell this medication, Colby knows that he can set a high price. The lack of competitors means that people who need the medication will have to pay the price, no matter how high.
Look up an article that is within the last 5 years about the high cost of medication in the US. You will share a summary of this article with the class.
Colby works for a pharmaceutical company and is in charge of pricing strategy. His company just received a patent for a new medication. Since it is the only company that is allowed to make and sell this medication, Colby knows that he can set a high price. The lack of competitors means that people who need the medication will have to pay the price, no matter how high.
- Colby is trying to help his company succeed, but is this pricing strategy ethical?
- Or is Colby hurting the public by making it difficult for them to access the medication they might need?
Activity - Music Survey
FBLA Dress Code - 20 points
- You may work alone or with ONE partner.
- Conduct a survey of 25 students to determine at what price they would buy the latest popular music download.
- Prepare a demand schedule using the results of the survey.
- Determine what s/he can conclude from the survey about the relationship between the demand for a product and its market price, write an explanation of her/his conclusions, and submit it to Google Classroom.
- Upload your demand schedule to Google Classroom. 30 points
- We will present on Thursday. Each group member will present for 1 minute. 50 points
FBLA Dress Code - 20 points
FINAL EXAM - BAA
Click here to go back and look at the BAA.
Fix ALL your activities. Go back and made things BETTER. This will be your FINAL EXAM for this class. Everything is due this Thursday by the end of 1st period.
Alternate exam - See me. It will be a 100 question multiple choice exam based off the "Objectives" we have done this year. You will be given the class period on Thursday to take it.
Fix ALL your activities. Go back and made things BETTER. This will be your FINAL EXAM for this class. Everything is due this Thursday by the end of 1st period.
Alternate exam - See me. It will be a 100 question multiple choice exam based off the "Objectives" we have done this year. You will be given the class period on Thursday to take it.