Supply and Demand

1. Supply and Demand Social Studies Grade 9 Ms. MacLean April 2012

2. Producers and Consumers (p. 144) • Producer: sellers or people who produce an economic good or service. • Consumer: customers or people who will buy an economic good or service.

3. Producers and Consumers (p. 144) • Identify 3 producers. • Identify 3 consumers (or ways to be a consumer).

4. Supply and Demand (p. 144) • Demand: the quantities of an economic good or service that consumers are willing and able to buy at certain prices. • Supply: the quantities of an economic good or service that producers will be willing and able to supply at certain prices.

5. Supply and Demand (p. 144) • We create a demand for an item when we are willing and able to give something of value (money, pay for it). • An item in demand can either be a good or a service. • Someone must supply the items which are in demand.

6. Supply and Demand (p. 144) • High Demand = High Prices • Low Demand = Low Prices • High Supply = Low Price • Low Supply = High Price

7. Supply and Demand (p. 144) • If the price of something rises, supplies produce more of it. Why? • If the price of something falls, producers produce less of it. Why?

8. Supply and Demand (p. 144)

9. Supply and Demand (p. 144) • Let’s see what a Supply and Demand graph would look like if we were to sell pizza to our class. • Page 144, Table 10.1

10. Supply and Demand (p. 144) • Now it’s your turn! • Page 145 #1 a) b)