1. Think of something you would like to buy. Do you know who makes it? Do you know its price? Buying, selling, and deciding on prices are important ideas in ECONOMICS!

2. Today’s GOAL To identify the different kinds of producers Explain the relationship between SUPPLY and DEMAND Today’s lesson will focus on producers, what goods they make and sell, and what services they provide to consumers. It also explains the relationship between supply and demand in a free enterprise system.

3. Important Vocabulary Producer Consumer Supply Demand

4. Producers WORK! Goods are things that can be bought A producer ______________ and ____________ goods. Producers work to provide good or services for others to buy or use. Name some different producers!

5. Consumers Buy Things A consumer is someone who _________ the goods or services sold by a ________________. Producers are also CONSUMERS…Can you think of an example?

6. Producers Specialize To specialize in something means you do a SPECIAL type of work. Producers specialize so they can better meet the needs of people and what people want.

7. FREE ENTERPRISE We have the RIGHT to make choices… Producers can run any business they want! Consumers can buy anything they want and can afford!

8. What is Supply? Producers are free to __________ what they want, and consumers are free to __________ what they want. At high prices, producersAt low prices, producers make more things. make less things.

9. What is Demand? Demand is the amount consumers are willing to ______ for a certain _____________.

10. Evaluate…. Do you think free enterprise is good for people? Why or why not? Be ready to discuss your answer with the class.