Supply and Demand

Supply and Demand

Terms students should copy into their notes:

  • Demand: the quantity of a good or service that consumers are willing and able to buy at a particular price
  • Supply: is the quantity of a good or service that businesses are willing to and able to provide within a range of prices that consumers are willing to pay.

Group Activity: four groups – 2 DEMAND & 2 SUPPLY

The 1 Demand Group will detail the conditions that affect demand and the LAW OF DEMAND
(PRICE, CONSUMER INCOME,TASTES AND PREFERENCES,DEMOGRAPHY AND DEMAND)

The 2 Demand Group will detail the conditions that affect demand and the LAW OF DEMAND
(PRICE, CONSUMER INCOME,TASTES AND PREFERENCES,DEMOGRAPHY AND DEMAND)

The 1 Supply Group will determine the conditions that affect supply and the LAW OF SUPPLY
(PRODUCTION COSTS, CHANGES IN TECHNOLOGY,OWNER’S DESIRE, ENVIRONMENTAL/OTHER CONDITIONS)

The 2 Supply Group will determine the conditions that affect supply and the LAW OF SUPPLY
(PRODUCTION COSTS, CHANGES IN TECHNOLOGY,OWNER’S DESIRE, ENVIRONMENTAL/OTHER CONDITIONS)

The groups from Supply and Demand will then get together and share their findings.

Additional Practice: read 5-2, complete questions 1, 2, 4