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Social Studies Economics - Bayport-Blue Point School District

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I<br />

S<br />

(3) Command<br />

(4) Mixed<br />

(E) How does the marekt economy answer the three<br />

basic economic questions<br />

Page 18<br />

(1) Payment of rent, wages, salaries and interest<br />

(2) Role of profit<br />

(3) Circular flow diagram<br />

(F) Traditional economy answer the 3 basic questions<br />

(C) How does a command economy answer the 3 basic<br />

questions.<br />

III. Supply, Demand and Prices<br />

(A) Model of pure competition<br />

(1) How outside forces affect P.C.<br />

(B) The Law of Demand<br />

(C) The Law of Supply<br />

(D) Equilibrium Price<br />

(E) Factors which affect demand<br />

(1) Preference and taste<br />

(2) Income<br />

(3) Price of substitute<br />

(4) Buyers expectations<br />

(5) Size of the market<br />

(F) Factors which affect supply<br />

(1)<br />

(2)<br />

(3)<br />

(4)<br />

(5)<br />

(6)<br />

(7)<br />

Research costs<br />

Technology<br />

Prices of producers substitutes<br />

Sellers expectations<br />

Number of sellers<br />

Natural events<br />

Gov’t. — taxes, subsidies and regulation

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