2._learning_goals_outline.docx | |
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After this chapter, you will be able to:
LO1 - comprehend the nature of demand, changes in quantity demanded, changes in demand, and the factors that affect demand
LO2 - understand the nature of supply, changes in quantity supplied, changes in supply, and the factors that affect supply
LO3 - explain how markets reach equilibrium – the point at which demand and supply meet
Additional Key Content Below:
LO1 - comprehend the nature of demand, changes in quantity demanded, changes in demand, and the factors that affect demand
LO2 - understand the nature of supply, changes in quantity supplied, changes in supply, and the factors that affect supply
LO3 - explain how markets reach equilibrium – the point at which demand and supply meet
Additional Key Content Below:
1. Oil Prices: Supply and Demand.
Commodity prices can often function according to a fairly simply supply-demand formula. Higher demand, higher prices, and lower demand, lower prices... However, there are some other factors at work. Watch the video below and explain how supply and demand are influencing global oil prices. What else does the changing price of oil impact? Who benefits from the recent change? Who is hurt be the recent price changes?
Commodity prices can often function according to a fairly simply supply-demand formula. Higher demand, higher prices, and lower demand, lower prices... However, there are some other factors at work. Watch the video below and explain how supply and demand are influencing global oil prices. What else does the changing price of oil impact? Who benefits from the recent change? Who is hurt be the recent price changes?
2) Economic Question: What incentives do people respond to? And how can we use this to make our businesses and organizations (schools, hospitals, etc.) more successful and rewarding?
It is obvious that money works as a strong incentive for people to do a lot of things, even things that they do not enjoy. But economic researchers (economists), are increasingly discovering that we are motivated by many other things as well, and most often in ways that are contrary to what was initially thought. From wanting more autonomy, to feeling like we actually make a difference, people are often motivated by factors more complicated than business owners usually think.
It is obvious that money works as a strong incentive for people to do a lot of things, even things that they do not enjoy. But economic researchers (economists), are increasingly discovering that we are motivated by many other things as well, and most often in ways that are contrary to what was initially thought. From wanting more autonomy, to feeling like we actually make a difference, people are often motivated by factors more complicated than business owners usually think.
3) Demographics, Demand, and Production Possibilities
More people equals more demand for a whole range of products. More people need more food, more clothing, more water, more houses, et cetera. More people also means increased production possibilities; with more people we can farm more, mine more, and manufacture more. But in Europe, demographics are bad... very bad. Too many old people, and not enough young people; this causes a problem that governments are trying to fix with immigration. Follow the link below and think about how immigration is helping to alleviate the problem of too many old people.
http://www.economist.com/blogs/graphicdetail/2015/01/daily-chart-15
More people equals more demand for a whole range of products. More people need more food, more clothing, more water, more houses, et cetera. More people also means increased production possibilities; with more people we can farm more, mine more, and manufacture more. But in Europe, demographics are bad... very bad. Too many old people, and not enough young people; this causes a problem that governments are trying to fix with immigration. Follow the link below and think about how immigration is helping to alleviate the problem of too many old people.
http://www.economist.com/blogs/graphicdetail/2015/01/daily-chart-15
4) Demand and Supply in the Labour Market: What will automation do to wages and demand for labour? What types of jobs will most likely disappear as automation increases?
5) One of the most influential factors causing demand for goods and services to shift is consumer preferences. Often "scientific" studies on health benefits or dangers can cause significant demand shifts in food markets.