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Basic Economic Concepts Unit 1
--What is Economics?
--Micro vs. Macro
--Scarcity and Opportunity Cost
--Production Possibilities Frontiers
Demand/Supply/Equilibrium Unit 2
Costs of Production Unit 3
ECONOMICS College Prep
Basic Economic Concepts CPE CH 1 & 2
Demand and Supply Ch 3
Equilibrium Ch 4
Floors/Ceilings/Elasticity CH 4/7
Surplus VS Shortage Econ
Surplus is when the supplies exceed the demand for the supplies.
When there is a surplus, the price will shift downward to the Equilibrium.
to reach the Equilibrium, the supply will move along the frontier left, and the demand will move along the frontier right.
Shortage is when the supplies do not meet the demand for the supplies.
When there is a shortage, the price will shift upward to the Equilibrium.
To reach the Equilibrium, the supply will move along the frontier right, and the demand will move along the frontier left.
2008, Various weather conditions caused the orange crop to fail, causing the Supply to fall below the current demand. A shortage was declared.
http://www.washingtonpost.com/ wp-dyn/content/article/2006/ 10/14/AR2006101400451.html
In 2008, after a particularly rough hurricane season, most of the US orange supply was damaged and weakened. Orange trees were destroyed and the total quantity of Oranges in the U.S. decreased dramatically. Companies Like Coca-cola and Tropicana were forced to import more oranges from Brazil at a higher price. In order to continue making a profit on their products they had to increase the price as well, reducing the quantity demanded. The market is still recovering and fluctuating around the equilibrium.
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