1. Supply and demand together
Markets at work
Supply and demand together

2. Shifting supply & demand:
When supply or demand increase, the curve shifts to the right. When supply or demand decrease, the curve shifts to the left.
A market is where consumers and producers get together to exchange goods and services for money. Ex: supermarket, stock market

3. Market forces
A surplus exists when the quantity supplied is higher than the quantity demanded.
This means the price is too high for consumers to be willing to buy all of the supplied product.
A shortage exists when the quantity demanded is higher than the quantity supplied.
This means the price is lower than the good is valued by consumers and producers can raise the price.
The market forces of shortage and demand work together until the market reaches an equilibrium price, at which the quantity supplied and demand are equal.

4. Price controls
When the government believes the market forces are unfair to consumers or producers, they can create price controls.
Price ceiling: a maximum price for an item set by the government.
Ex: rent control in New York City
Price floor: a minimum price for an item set by the government.
Ex: minimum wage (the lowest legal wage an employee can be paid)

5. Kahoot time! Please use your computer, not your phone!!! Student Link:
Ms. Long Link:
dfd9e6121cd7