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I. UNIT I

I. UNIT I. A. The Nature and Methods of Economics. and the Economizing Problem. 1. Scarcity. www2.volstate.edu/rrouch. ECO 211. Economics is the social science which studies the. way that we as individuals and as groups of. individuals make the choices which are forced. upon us by.

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I. UNIT I

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  1. I. UNIT I A. The Nature and Methods of Economics and the Economizing Problem 1. Scarcity

  2. www2.volstate.edu/rrouch ECO 211

  3. Economics is the social science which studies the way that we as individuals and as groups of individuals make the choices which are forced upon us by scarcity.

  4. Rick's Greatest Hits

  5. I. A. 1 Scarcity

  6. Scenario 1 Toyota USA produces exactly 100,000 Camry’s Per year. The dealers are currently charging $17,000 for each. 120,000 potential buyers are each trying to find and buy one new Camry at this price. Scenario 2 Toyota USA produces exactly 100,000 Camry’s Per year. The dealers are currently charging $19,000 for each. Exactly 100,000 potential buyers are each trying to find and buy one new Camry at this price. Scenario 3 Toyota USA produces exactly 100,000 Camry’s Per year. The dealers are currently charging $22,000 for each. Only 80,000 potential buyers are trying to find and buy one new Camry at this price.

  7. How many Camry’s do people really want? The amount that they would attempt to "buy" if the price were zero.

  8. Special Note: Don't jump to wrong conclusion here. Dropping the price of Camry’s to $0 does not cause people to want more than they did before...it causes them to act on wants that they had all along! Price doesn't affect wants.............price effects what we DO?????????

  9. I. A. 1 Scarcity Why don’t we make all that people want (assuming that’s possible)?

  10. Why don’t we make all that people want (assuming that’s possible)?

  11. Why don’t we make all that people want (assuming that’s possible)?

  12. Why don’t we make all that people want (assuming that’s possible)?

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