Match each scenario with the economic concept at play.
tiles
consumer sovereignty
property rights
interest
pairs
jamie borrowed $10,000 from the bank. eventually, the loan payments will total $11,156.
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super soba noodles was doing fine until the arrival of a new brand of noodles, magic soba. people stopped buying super soba, opting for magic soba instead. gradually, super soba had to reduce production as demand decreased.
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michael owns a two-story house with a large lawn. he decides to use his house and lawn to run a fitness boot camp.
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1. consumer sovereignty = Super Soba noodles was doing fine until the arrival of a new brand of noodles, Magic Soba. People stopped buying Super Soba, opting for Magic Soba instead. Gradually, Super Soba had to reduce production as demand decreased.
As you can see here, the consumer has all the power - since the consumers started buying Magic Soba more than Super Soba, the other company had to change its policy.
2. property rights = Michael owns a two-story house with a large lawn. He decides to use his house and lawn to run a fitness boot camp.
This house is Michael's property, and he has the right to do whatever he wants with it.
3. interest = Jamie borrowed $10,000 from the bank. Eventually, the loan payments will total $11,156.
When you borrow money from a bank, your interest will grow depending on how long it will take you to return that money.