Do Now
What would you do if your favorite shoes went on sale
for $5?
What would you do if your favorite shoes went on sale
for $250?
Equilibrium and Prices in the
Market
MR. WOOD
ECON 102
Essential Question
 How are Equilibrium prices set in the market and
what happens when the equilibrium prices are
changed?
 9.12b.2
Discuss the effects of changes in supply
and/or demand on the relative scarcity, price, and
quantity of particular products (supply/demand
curve.)
Objective
Identify and define market equilibrium and
Equilibrium price
Let’s go back to Berkeley!!
 http://www.youtube.com/watch?v=ZR2255CEhvk
 24:45- 36:00
 We will watch, compare notes with a partner +
finally discuss the lecture
Today’s Reading Homework
THIEVES notes for Ch. 6
Title
6.1- Introduction- 1-2 sentence summary
Summary- key words + notes
6.2- 6.3, pages 100-5
Headings into questions
0-2 notes per paragraph
Ticket Out
Paired Verbal Fluency
- What did you learn today???
Do Now
What does Equilibrium Price mean?
Do Do Now
 Why do shortages happen?
 Why do surpluses happen?
Agenda
Yesterday
Today
THIEVES Notes
Title
Introduction- 1-2 sentence summary
Summary- key words + notes
6.1- 6.3, pages 100-5
Headings into questions
0-2 notes per paragraph
Lectures from Khan Academy
Lecture from Cal-Berkeley
Watch, make predictions, Compare
notes + Discuss
Practice Problems- Equilibrium Price
Homework- THIEVESHeadings into questions
- First Sentence
- Key words + ideas
P. 105- 111- 6.4- 6.5
Objective
Explain and Graph Equilibrium prices
Demonstrate how shifts in demand and supply affect
equilibrium price
Lecture – Equilibrium Price
 https://www.khanacademy.org/economics-finance-
domain/microeconomics/supply-demandequilibrium/market-equilibrium-tutorial/v/marketequilibrium
 Watch, Compare notes + Discuss
Changes in Equilibrium Price
 https://www.khanacademy.org/economics-finance-
domain/microeconomics/supply-demandequilibrium/market-equilibrium-tutorial/v/changesin-market-equilibrium
 Watch, make predictions, Compare notes + Discuss
Practice- Test Prep
Practice situations with equilibrium price
Ticket Out
What would be the new equilibrium price for a can of
Red Bull if it was found out that drinking a small can
of Red Bull every day made you live 5 years less?
Do Now
Define 2 of the 3 terms
 Allocative Efficiency
 Productive efficiency
 Dynamic Markets
Agenda
Yesterday
Today
Lectures from Khan Academy
Finish Test Prep Exercises
Lecture- Price + Price Controls
Watch, make predictions, Compare
notes + Discuss
Practice Problems- Equilibrium Price
Homework- THIEVESFirst Sentence
- Key words + ideas
P. 105- 111- 6.4- 6.5
Homework- THIEVESFirst Sentence
- Key words + ideas
P. 112- 115- 6.6
Objective
Explain and Graph Equilibrium prices
Demonstrate how shifts in demand and supply affect
equilibrium price
Explain the role of price in a modern mixed economy
Take out your Test Prep
Let’s continue to work on our Test Prep
The Role of Price in a Modern Mixed
Economy
 Allocative Efficiency
 Productive efficiency
 Dynamic Markets
 Creative Destruction
While you are watching the two
videos- Answer this question with
2-3 details
HOW HAS THE MARKET
FOR
TELECOMMUNICATIONS
CHANGED IN THE PAST
20-30 YEARS?
HTTP://WWW.YOUTUBE.COM/WATCH?V=EX7QLNGZ7QO
HTTP://WWW.YOUTUBE.COM/WATCH?V=5MCRFXDIQWS
Ticket Out
Define 2 of the 3 terms
 Allocative Efficiency
 Productive efficiency
 Dynamic Markets
Do Now
 What are Price Ceilings?
 What are Price Floors?
(these are in your text book)
Agenda
Yesterday
Today
Finish Test Prep Exercises
Lecture- Price + Price Controls
Lecture on Government Intervention
Homework- THIEVESFirst Sentence
- Key words + ideas
P. 112- 115- 6.6
Government Intervention
Price Controls
- Price Floors
- Price Ceilings
Price Ceiling
Price Floors
https://www.khanacademy.org/economics-finance-domain/microeconomics/consumer-producersurplus/deadweight-loss-tutorial/v/minimum-wage-and-price-floors
Your Test!!!!
Next Class period!!!!