Supply and Demand: An Introduction ■ Market1 a How do consumers get the goods and services they want in the right quantities and qualities? o Some goods and services are allocated by the market forces of supply and demand Chapter 3-Supply and Demand: An Introduction Slide 6
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 6 Supply and Demand: An Introduction ◼ Market 1 ◼ How do consumers get the goods and services they want in the right quantities and qualities? ⚫ Some goods and services are allocated by the market forces of supply and demand
Supply and Demand: An Introduction ■ Market2 Why do some goods and services have shortages or surpluses and others do not? o Some good and supplies services are regulated by government Chapter 3-Supply and Demand: An Introduction Slide 7
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 7 Supply and Demand: An Introduction ◼ Market 2 ◼ Why do some goods and services have shortages or surpluses and others do not? ⚫ Some good and supplies services are regulated by government
What How, and for whom? Central Planning Versus the Market a Three Problems All Economic Systems Must Address What should be produced? How should it be produced? o For whom will it be produced? Chapter 3-Supply and Demand: An Introduction Slide 8
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 8 What, How, and for Whom? Central Planning Versus the Market ◼ Three Problems All Economic Systems Must Address ⚫ What should be produced? ⚫ How should it be produced? ⚫ For whom will it be produced?
What, How and for whom? Central Planning Versus the Market Centralized Economic Organizations o Agrarian society o Former Soviet Union Cuba. North Korea ● China ● Bureaucracy Chapter 3-Supply and Demand: An Introduction Slide 9
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 9 What, How, and for Whom? Central Planning Versus the Market ◼ Centralized Economic Organizations ⚫ Agrarian society ⚫ Former Soviet Union ⚫ Cuba, North Korea ⚫ China ⚫ Bureaucracy
What, How and for whom? Central Planning Versus the Market a small number of individuals address e What Establish production targets for factories and farms ●How Plan how to achieve the goals ● For Whon Distribute the goods and services produced Chapter 3-Supply and Demand: An Introduction Slide 10
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 10 What, How, and for Whom? Central Planning Versus the Market ◼ A small number of individuals address ⚫ What Establish production targets for factories and farms ⚫ How Plan how to achieve the goals ⚫ For Whom Distribute the goods and services produced