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Transcript

Supply and Demand

Pop Quiz!

Demand

  • Amount of a good consumers want to buy.
  • May depend on price.

Supply

  • Amount of a good produced and offered for sale.
  • May depend on price

Introduction

  • Supply increases as price increases.
  • Supply can shift up or down depending on many factors.
    • Number of suppliers, Price, etc.

Graphing Supply

  • Demand decreases and price increases.
  • Demand shifts up or down depending on many factors.
    • Income levels, Consumer preference, etc.

Graphing Demand

  • Where supply and demand meet is the Equilibrium Price.
    • Goods produced = Goods bought
  • Markets will trend towards the equilibrium to prevent surplus and shortage of goods.
  • When supply or demand shift, equilibrium price moves too.

Supply, Demand, and Price

Quiz (Again!)