Supply and DemandSocial StudiesGrade 9Ms. MacLeanApril 2012

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.

Producers and Consumers (p. 144)•Identify 3 producers.

•Identify 3 consumers (or ways to be a consumer).

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.

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.

Supply and Demand (p. 144)

•High Demand = High Prices•Low Demand = Low Prices•High Supply = Low Price•Low Supply = High Price

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?

Supply and Demand (p. 144)

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

Supply and Demand (p. 144)

•Now it’s your turn!

•Page 145 #1 a) b)