1. Supply & Demand
Marketing I

2. Supply and Demand
Supply: “amount of goods producers are willing to make & sell”
example: 48 jackets, 20 sweatshirts, 15 tote bags
Demand: “consumers willingness & ability to buy products”
example: students wanted to buy the items above
Supply and demand determine prices and quantities of goods and services produced

3. Supply = Demand Equilibrium
Equilibrium: “when the amount of a product (supply) is equal to the amount consumers want (demand)”
Supply = Demand

4. Theory of Supply and Demand
When supply is HIGH and demand is LOW, the price will be LOW
When demand is HIGH and supply is LOW, the price will be HIGH

5. Surplus v. Shortage
Surplus: Supply is high, Demand is low, Price is low
Shortage: Supply is low, Demand is high, Price is high

6. Activity
Students are to apply their knowledge of the Law of Supply & Demand to a hot holiday product
Create the following 8-slide PowerPoint:
Cover Slide
Agenda
Select Product (include picture)
Brand
Marketing Mix
Apply Law of Supply & Demand (how it affects price)
Shortage v. Surplus
Conclusion
PPT to Ms. VanDyke