Define the following terms in your own words

Market- a composition of systems, institutions, procedures, social relations or infrastructures whereby

parties engage in exchange.

Market forces- the economic factors affecting the price of, demand for, and availability of a commodity.

Supply- the amount of a resource that firms, producers, labourers, providers of financial assets, or other
economic agents are willing and able to provide to the marketplace or to an individual.

Demand- the quantity of a good that consumers are willing and able to purchase at various prices during
a given time.

Equilibrium- a condition or state in which economic forces are balanced.

Shortage- occur when the quantity demanded exceeds the quantity supplied.

Surplus- the amount of an asset or resource that exceeds the portion that's actively utilized.

Fair market value- the value of property as determined by the marketplace (or objective purchasers) rather
than as determined by a subjective individual.
 Answer the question from the video using complete sentences.

2. How does the consumer interest in the canes start?

The consumers were interested in the canes so that they could dance with them

3. What makes the price go up initially?

Jonathans store had canes while Kristens store was out , so the consumer was willing to
pay more to get what he wanted

4. What is Kristen and Jonathan’s motivation for ordering more canes?

They do not want to risk running out of canes and possibly having their customers buy
from their competitors shop instead of theirs .

5. What are the factors that cause the price of the canes to continue to go up?

Because of the increase in demand , people are willing to pay more for the canes , so
they begin to go up in price . Each seller wants to make more money , so they go back
and forth on raising their prices .

6. What causes the surplus?

The price becomes too high for their consumers , so people stop buying canes .

7. How does the surplus affect the cost of the canes?

The price drops drastically, to get rid of surplus .

8. What are the factors that cause the price of the canes to continue to go down?

As their competitors price drops and people buy more from them , each shop drops their prices
below their competitions to sell more of their surplus canes .