ch. 1.6 Supply and Demand

Watch this video, then read ch. 1.6 and answer this question.  Be prepared to discuss the following:

1. Win-Win voluntary exchange vs getting screwed by the system.
2. There are two basic types of mismatches: surplus and shortage.  Pick a product you know and love and explain both types using that product.
3. Open-ended: how do you think big brands/companies figure out equilibrium price and equilibrium quantity for their products? In other words, how does fred meyer know how much halloween candy to buy each year? Or Nike know which shoes to make at what time in what quantity?
4. What are the limitations of the market approach?  When and why is it not the best approach to any given exchange? What problems arise from unregulated markets?