WinSun, a Chinese firm, began producing 3-D printed houses...

WinSun, a Chinese firm, began producing 3-D printed houses in late 2013. These houses were produced in a fraction of the time it would take to produce a house in the regular way and at a much lower cost. This is an example of: an advance in technology leading to a rise in productivity. a rise in productivity causing an advance in technology. a movement to the left along the same production function. a movement to the right along the same production function.

Transcript

00:01 Explain what is meant by the market economy.

00:02 A market economy is an economic system in which economic decisions and the price of goods and services are guided solely by the aggregate interactions of the countries, individuals, citizens, and businesses.

00:15 There is little government intervention or central planning.

00:45 So, it's governed by the laws of supply and demand.

00:51 The forces of supply and demand determine the amount of goods and services produced and their prices.

00:59 So we know that if we have supply and demand, we can find the equilibrium price and equilibrium quantity.

01:06 High demand causes the price of a good to increase.

01:12 So if we have demand shifting, the price would go up.

01:15 Low demand would decrease the price.

01:17 So if you have demand shifting to the left, the price would go down.

01:21 The producers will respond to demand with higher demand causing them to produce more and lower demand causing them to produce less.

01:42 Most businesses are owned and operated by private individuals or companies.

01:46 Owners are free to produce, sell, and purchase goods and services in a competitive market.

02:09 Now let's talk about complements and substitutes.

02:13 The complements are goods that are usually purchased together.

02:17 So demand will move in the same direction.

02:21 If demand for one of them goes up, the demand for the other one will also go up.

02:26 An example would be an ipod and ipod case.

02:33 So then let's look at the passage.

02:38 So the example in the passage would be furniture and housing because they would purchase furniture with the housing.

02:52 Substitutes are goods that can replace each other.

02:57 So an example would be pepsi and coke...

Question

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