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

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

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

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

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

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

8. Market Price
Supply = Demand

9. In Class Examples

10. Supply and Demand
Worksheet