Apply Economic Theories PT 2

COMPETENCIES TO MASTERCan apply basic microeconomic theory and principles of finance to analyze basic consumer decisionsCan use calculator to perform a variety of functionsOverviewWhy do things cost what they do, and why do prices change? How should we make decisions about where to spend money? In this Project, you’ll use fundamental economic and financial principles to analyze the changes in the price of Furbies over time and analyze choices about buying and selling Furbies.DirectionsRemember “Furby,” that strange furry toy from 1998? According to Wikipedia, Furbies originally sold for $35 each. However, they were so in-demand during the 1998 holiday season that they often resold for over $300. Today, you can buy a 1998 Furby for less than $15! Why? Complete the Supply and Demand Worksheet to find out!Before you start the Supply and Demand Worksheet, make sure you are familiar with the following terms and concepts:Economics concepts:Supply and demand graphsSurplus and shortageEquilibrium pointShifts vs. movementsFinance concepts:The present value of moneyStocks vs. bondsDELIVERABLESCompleted Supply and Demand WorksheetAccepted File Types: .doc, .docx, .odt, .rtf, .txt, .pdfReading Materialhttps://www.saylor.org/site/textbooks/Principles%20of%20Economics.pdfhttps://www.khanacademy.org/economics-finance-domain/microeconomics/supply-demand-equilibrium/market-equilibrium-tutorial/v/market-equilibriumhttps://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/introduction-to-present-valuehttps://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/stocks-intro-tutorial/v/bonds-vs-stockshttp://cfaresources.s3.amazonaws.com/AA%20General%20Studies/1%20-%20Common%20Resources/How%20to%20Draw%20in%20Microsoft%20Word%20and%20Google%20Drive%20Documents.pdfhttps://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/interest-basics-tutorial/v/introduction-to-interesthttps://www.khanacademy.org/math/pre-algebra/pre-algebra-arith-prop/pre-algebra-order-of-operations/v/order-of-operationshttps://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/time-value-of-moneyhttp://www.ehow.com/about_5086994_furbys.html

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