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Lemonade Stand Economics

Lemonade Stand Economics. Vocabulary: Words to Know. Production. “My product is great tasting lemonade.”. Production is the creation of goods and services. Manufacturing is to make or produce by hand or machinery, usually on a large scale.

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Lemonade Stand Economics

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  1. Lemonade StandEconomics Vocabulary: Words to Know

  2. Production “My product is great tasting lemonade.” • Production is the creation of goods and services. • Manufacturing is to make or produce by hand or machinery, usually on a large scale. • Manufacturing products, such as cars or pencils, is production.

  3. Goods – physical objects that are produced Services – Tasks that a person performs for someone else Goods and Services Others?

  4. Human Resources Skills, training, and abilities people have to complete tasks that result in production Nonhuman Resources Raw materials, tools, and manufactured products that are used to make goods and services Resources Resources are things that are used to create other goods and services.

  5. “Hmm, what resources will I need to create my lemonade?” Human Resources Nonhuman Resources

  6. Profit Profit is the difference between the money received from selling a product and the cost of producing the product. Profit = Price - Cost

  7. Costs Lemons 8 @ .49 each Sugar 1 lb. @ $1.29 Cups .10 each Price Sold 20 cups of lemonade at .50 per cup What is my profit?

  8. Scarcity Scarcity is the situation in which consumer’s wants are greater than the resources available to satisfy those wants. “I could have sold 10 more cups of lemonade if I hadn’t run out of lemons!”

  9. Scarcity • What are some examples of scarce resources? • How do our choices determine how scarce resources will be used to produce goods and services? • How do our choices affect prices of goods and services?

  10. Supply and Demand Supply is the quantity of a product that producers are willing and able to make available for sale at various prices over a given time period. “I only had time to make one gallon of lemonade.”

  11. Supply and Demand Demand is the quantity of a good or service that consumers are willing and able to buy at various prices during a given time period. “When I lowered the price and increased the size, the demand was greater!”

  12. Competition “Timmy just opened a lemonade stand one block away. What will I do to compete?” Economic competition occurs when two or more sellers offer similar goods and services for sale in the marketplace.

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