1. Demand, Supply, and Prices Dr. T. D. Mitchell Bonneville High School Idaho Falls, Idaho

2. Demand, Supply, and Prices Concept Review Demand is the willingness to buy a good or a service and the ability to pay for it. Supply is the willingness and ability to produce and sell a product. Key Concept The equilibrium price is the price at which quantity demanded and quantity demanded.

3. Seeking Equilibrium: Demand and Supply Objective Explore market equilibrium and see how it is reached. Explain how demand and supply interact to determine equilibrium price. Analyze what causes surplus, shortage, and disequilibrium. Identify how changes to demand and supply affect the equilibrium price.

4. The Intersection of Demand and Supply The market place is where demand and supply interact. The market moves to equilibrium. Equilibrium price Market Demand and Supply Schedule

5. The Intersection of Demand and Supply Market Demand and Supply Curve

6. Reaching the Equilibrium Price

7. Surplus, Shortage, and Equilibrium Surplus Shortage Price Ceiling Price Floor

8. The Problem with Disequilibrium