Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


Chapter 5, Section 1

Economics prezi

Econ FifthHour

on 27 November 2012

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Chapter 5, Section 1

Learning Objectives 1) What is the role of the price system?
2) Benefits of the price system?
3) Limitations of the price system? Benefits -Information
-Flexibility Benefits -Information
-Flexibility ~Allows businesses to make decisions on how much to charge for products
~Informs consumers of the relative worth of goods and services ~With price incentives, producers and consumers can easily exchange goods and services
~Generally,law of supply and law of demand assist with incentives
~High prices with low costs encourages producers to provide more goods and services ~By encouraging participation in markets, variety of choices increases
~In competing with one another, the manufacturers create hundreds of different products, trying to match consumers preferences and generate the most profit ~Quickly delivers information to producers and consumers
~Provides a wise use of resources
~With high prices, the producers will use the resources
~With low prices, the producers will stop using resources to provide goods and services people don't want ~Greatest strength is its ability to deal with change, such as frost in Florida and flash floods in New York.
~ If prices don't rise demand would be higher than quantity supplied. Limitations -Externality
-Public good
-Instability ~The production of goods sometimes results and side effects for people are not directly connected with the production or consumption of goods.
~Negative and positive side effects
~Negative - someone who does not make/consume it but still pays->responsible for outside events
~Positive-benefits without buying/selling products ~Any good or service that is consumed by all members of a group ~Flexibility is a good thing, but it can also make it unstable.
~A drop in prices could force producers to go out of business Think Pair Share What is the role of the price system? The End =) The Price System
Kia Hall, Jon Ganun, Sarah Westman
Full transcript