Marketing I

Supply and Demand Supply: “amount of goods producers are

willing to make & sell” example: 48 jackets, 20 sweatshirts, 15 tote

bags

Demand: “consumers willingness & ability to buy products” example: students wanted to buy the items

above

Supply and demand determine prices and quantities of goods and services produced

EquilibriumEquilibrium: “when the amount of a product

(supply) is equal to the amount consumers want (demand)”

Supply = Demand

Theory of Supply and DemandWhen supply is HIGH and demand is LOW,

the price will be LOW

When demand is HIGH and supply is LOW, the price will be HIGH

Surplus v. ShortageSurplus: Supply is high, Demand is low, Price

is low

Shortage: Supply is low, Demand is high, Price is high

ActivityStudents are to apply their knowledge of the

Law of Supply & Demand to a hot holiday product

Create the following 8-slide PowerPoint:1. Cover Slide2. Agenda3. Select Product (include picture)4. Brand5. Marketing Mix6. Apply Law of Supply & Demand (how it affects

price)7. Shortage v. Surplus8. Conclusion

Email PPT to Ms. VanDyke (hvandyke@lcps.org)