Market Economy

A DEEP DIVE INTO CAPITALISM

​MARKET ECONOMY
an economy where individuals and corporations buy and sell freely, and prices are determined by the law of supply and demand, not by the government.

​CONSUMER
someone who purchases a good or service

​KEY TERMS

Fill in the Blank

Someone who purchases a good or service is called a.........

Multiple Choice

A Market Economy is...

• An economic system where individuals and corporations buy and sell freely, and prices are determined by the law of supply and demand, not by the government.

• An economic system where individuals and corporations cannot buy and sell freely, and prices are determined by the law of supply and demand, not by the government.

• An economic system where individuals and corporations buy and sell freely, and prices are determined by the government.

• An economic system where individuals and corporations buy and sell freely, and prices are determined by international corporations.

​SUPPLY AND DEMAND
an economic concept that determines prices and profits in a market economy; when supply is high and demand is low, prices are low; when demand is high and supply is low, prices are high.

​Let's say that every student in the front row is selling king sized Snickers as a fundraiser for their sports teams or clubs. Everyone else in the class are the consumers. Everyone in the front row except Justin is selling the candy bars for $1.00. Justin is selling them for $1.50.

​Scenario

Poll

Who are you buying the candy from? They're all selling the same candy bar, the only difference is the price. (Select all the choices that you think are the most financially convenient)

• Nina

  Candy Bar $1.00

• Ruben

  Candy Bar $1.00

• Justin

  Candy Bar $1.50

• Vanessa

  Candy Bar $1.00

Multiple Choice

There are about 25 of you that are not selling candy bars, and five of you that are. Each of the five students that are selling candy bars have 100 candy bars to sell each. In this scenario which is greater the supply or the demand for candy bars?

• Supply

• Demand

Multiple Choice

Keemya has a bakery where she sells amazing pies and the most delicious and refreshing lemonade. Keemya asks her mom is she'd like to go eat to Chick Fila after her work day is over, her mom says yes!

Keemya is so excited to eat a spicy chicken deluxe along with a peach smoothie.

What would be considered the "supply" in Keemya's bakery?

• pies and lemonade

• spicy chicken deluxe sandwiches

• peach smoothies

​Competition
When different sellers compete to sell the same product in a market


Consolidation
When sellers join together to form one larger company, limiting the number of sellers

Open Ended

What is consolidation?

​Mass production
Producing goods on a large scale, allowing products to be produced more quickly

Multiple Choice

Given the definition of market economy, would we consider "Target" to be an example of a market?

• yes

• no

Multiple Choice

Given the definition of market economy, would we consider a public park an example of a market?

• yes

• no

Open Ended

Why would a public park not be considered a "market"?