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LESSON: ARTHUR’S TV TROUBLE
Summary:
Arthur gets into “TV trouble” when he insists on buying The Amazing Treat Timer, a gadget that would help him feed his dog. Will it be worth using his hard-earned cash to purchase the Timer? See what happens to Arthur in this amusing story.
Concept: Demand - Advertising
Definition: Demand: how many goods or services buyers are willing and able to purchase at different prices.
Advertising: actions/information provided by sellers to get consumers to buy their products. Examples are signs, advertisements on radio and TV, flyers, Internet ads, newspaper ads, yellow pages, etc.
Comprehension Questions:
What is an advertisement?
Actions/information provided by sellers to influence you to purchase their products.
What are some examples of advertisements?
Ads in newspapers, on TV or radio, signs, flyers, yellow pages, etc.
What kind of advertisements influenced Arthur? Why?
Catchy ads for an Amazing Treat Timer he saw on TV and also in the newspaper and radio.
How did Arthur earn money to buy the Timer?
He stacked newspapers for a neighbor, who paid him 50 cents per stack. (Bonus question: How many sacks of newspapers did Arthur take to the corner to earn $12.00?)
Was Arthur pleased when he bought the Timer?
No. It scared his dog, and the Timer didn’t seem to work right. All sales were “final” so he couldn’t return it.
When you are thinking about buying something, what must you consider in your decision?
Consumers must weigh carefully if the benefits they will receive from a purchase is really worth the cost.
Typically, when you purchase a good, are all sales “final?”
No. Typically you can return a good if it is defective. If the sale of a good is indeed “final,” you must be very careful to make sure that you really want to purchase the good, realizing that if there are problems, you will not get your money back.
Must advertisers be honest?
Yes, there are rules/laws about being truthful in advertising, and most businesses that advertise are basically honest. However, some advertisers may stretch the truth, or there may even be some sellers that are indeed dishonest, so their ads may be fraudulent. (e.g. ads promoting fraudulent financial investment to unsuspecting senior citizens) Consumers must always be careful in making purchases.
How is advertising helpful?
It provides valuable information to consumers. This information includes what kinds of goods or services are available or are on sale, where they can be purchased, etc. Imagine how difficult it would be finding a house to buy without some form of advertising. It would be very costly, as buyers would have to drive around trying to find out which houses were for sale!
Have you ever advertised anything? Explain.
Answers will vary.
Other Concepts: Opportunity Cost
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