Supply and Demand 1-4

Market Economy Consumer-Person who buys and uses goods and services Producers-Individuals and organizations that determine what products will be made and sold

Demand Quantity of a good or service that consumers are willing to buy Consumers set demand

Supply Quantity of a good or service that businesses are willing and able to provide

Determining Price Prices are affected by the relationship between supply and demand, plus other factors.

Factors Influencing Demand High Demand = High Prices Low Demand = Low Prices Many Options = Low Prices Few Options = High Prices

Factors Influencing Supply Large Supply = Low Prices Minimal Supply = High Prices Many Competitors = Low Prices Few Competitors = High Prices

Market Price Supply = Demand

In Class Examples

Supply and Demand Worksheet