Patterns

Money is a key to the economic process. For centuries people have traded and bartered, but the use of money has made more sophisticated transactions possible. Money serves basic functions and has basic characteristics to assist in these exchanges. Societies have historically used different items as money, but regardless of which form money takes it ultimately must satisfy the needs of producers and consumers. VIDEO OBJECTIVES - Explain the functions that money serves - Describe the characteristics that an item must have to be used as money - Identify the sources of money's value - Identify and describe the types of money that are used in the United States

Factors other than price can affect demand for a product over time, causing a shift in its demand curve. These shifts illustrate a change in demand at each and every price. Changes in any of the determinants of demand can produce an entirely new demand curve for a good or service. VIDEO OBJECTIVES - Explain what it means for a product's demand to shift - Identity and describe the factors that can shift demand for a product - Explain how substitute goods differ from complementary

To determine whether a price change is in their best interest, producers need to determine elasticity of demand. The demand for a good or service can be either elastic or inelastic. By using the total-revenue test, produces are able to make pricing decisions that will earn the most revenue. VIDEO OBJECTIVES - Define demand elasticity - Describe the difference between elastic and inelastic demand - Explain how demand elasticity is measured