2. Supply Amount of goods and services producers are willing to make and sell

3. Demand Consumers willingness and ability to buy goods and services

4. Price The amount of money given or asked for when goods and services are bought and sold (i.e. exchange) Price is determined through the interactions of supply and demand

5. The Law of Supply and Demand When supply is low and demand is high, the price goes upSCARCITY When supply is high and demand is low, the prices goes downSURPLUS

6. Scarcity Shortage or Lack of Resources Principle of Scarcity: There are limited resources for satisfying unlimited wants and needs.

7. Surplus Abundance or overage

8. Activity Students will apply their knowledge of Supply/Demand and Scarcity/Surplus to a Hot Holiday Toys project