1. Created by Michelle Woods, SIOP Writer, WCPSS
Supply and Demand
Notes: You will need sound and the ability to play media player or connect to the internet for slide #1
You will also need the notes document so students can take notes while going through the PP and the Nike Retro Activity . There is also o
Created by Michelle Woods, SIOP Writer, WCPSS

2. Supply and Demand
When you hear the terms supply and demand what do you think of? What does it mean?
Have a class discussion.

3. Law of Supply
What is the goal of the Nike Corporation?
$$$
The goal is to make profit. How do they make profit?
Hyperlink the Jordan or use the media file in the corner. Go to the Nike Pure J video.
Why was this shoe released in September 2010? Why not February or March? (possible reason-back to school, more buyers) Why are there so many Jordans? (profit- able to keep the price high so more profit)
As the price of a their shoes increase, the quantity of shoes made increases.

4. Profit….Profit…Profit
How does Nike maximize their profits?
2010, $130.00
Make more shoes & increase the price!!
1985, $64.99
You can have a discussion on the other Jordan Brand Shoes and how the price for some special release Jordan’s are upwards to $ Discuss why Nike charges these prices and how the law of supply drives the prices.
As the price of the shoe increases the quantity made by Nike increases.
= Law of Supply

5. As the price of a good increases the consumers demand decreases.
Law of Demand
As the price of a good increases the consumers demand decreases.
Yikes, we can’t afford these shoes. We’ll have to buy something else.
$130
Talk to students about new products that come out, but they are unable to afford. Revisit the concept of tradeoffs in your discussion.
$110.00

6. Air Jordan, Retro 4 Historical prices
Graph it!
Air Jordan, Retro 4 Historical prices
Use the handout provided in the LG that has discussion questions for this slide. This slide/handout shows how the demand for Jordan Retro 4 changes based on prices.

7. Equilibrium Price When the supply equals the quantity demanded.
“I can’t afford this”
Supply
$ $ $ Profit, profit, profit
The supply equals the quantity demanded!
Demand axis
“Finally, I can buy it!”
Point out the different parts of the supply and demand graph.
Supply axis

8. Examples
With a partner determine the equilibrium price for each graph and define what equilibrium price is.
#1 $3 #2 $1.50

9. Supply and Demand Assignment
Choose a partner
Choose a company and product
Create a supply schedule and demand schedule then graph it.
Label the equilibrium price, supply and demand axis
Do an example for the class. Think of a product and walk them through the process before giving them the assignment to do in pairs.
Share your ideas with another group