1. Do Now
Write an example of opportunity cost you made
this weekend. What did you give up? What did
you gain? What was the limited resource?

2. Agenda
1. DO NOW
2. Review
3. Supply and Demand Notes
4. Supply and Demand Cartoon

3. Competencies/ Objectives
• Students will be able to identify the effects
that price has on supply and demand.
• Students will create a cartoon that
demonstrates the effect natural disasters/
holiday demands have on the price of
products.

4. Supply and Demand

5. Demand
How much of a product or
service is desired by others?
The quantity demanded is
the amount of a product
people are willing to buy at a
certain price.
The relationship between
price and quantity demanded
is known as the demand
relationship.

6. Supply
Supply means how much the
market can offer.
Quantity Supplied is
determined by how much
producers are will to make at
the given price.
The supply relationship refers
to how much a good or
service is supplied based on
price.

7. The Law of Demand
The higher the price of the
good the less people will
demand that good.
Why?
As the price goes up so does
the opportunity cost of
buying that good.

8. Law of Supply
The higher the price the
higher the quantity supplied.
Why?
Producers want to sell as
much as they can at as high of
a price as they can in order to
make more money.

9. Supply and Demand
Relationship
Equilibrium- When supply and
demand are equal.
The amount of goods being
supplied is the same as the
amount of goods being
demanded! Everyone is happy :
)
Equilibrium only exists in
theory.
That is why the prices of goods
and services are always
changing.

10. Disequilibrium
Excess Supply
If the prices is too high,
excess supply will be created.
Too much of a good or service
is offered and not enough
people are consuming it.

11. Disequilibrium
Excess Demand
The price is set below what
people are willing to pay for
it.
Too many consumers want
the good while producers are
not making enough of it.