Objectives: to understand:
- Demand, Supply, and Equilibrium in Markets for Goods and Services
- Shifts in Demand and Supply for Goods and Services
- Changes in Equilibrium Price and Quantity: The Four-Step Process
- Price Ceilings and Price Floors
To-Do Before Class
Read: Ch. 3 Introduction to Demand and Supply
Activities/Assignment
- Review week 3 slides and class notes
- Apply Your Knowledge
Economics in the Real World
Starbucks, Flush With Customers, Is Running Low on Ingredients
Discussion
- If Starbucks continues to experience shortages of certain items, what might happen to the prices of the drinks for which these are key ingredients?
- Using a supply and demand diagram, show what has happened to the supply of peach-flavored juice.
- (include instructions for students’ posts on the assignment here)
Read: “Your Steak is More Expensive, but Cattle Ranchers are Missing Out”
- Explain what is driving the increased price of beef.
- Explain what has happened to the supply curve for beef and the demand curve for beef.
