The Law of Supply and Demand Copyright © Texas Education Agency, 2011. All rights reserved.

The Law of Supply and Demand

Copyright © Texas Education Agency, 2011. All rights reserved.

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Economics and Consumer Demand

• Macroeconomics-studies the economic behavior and relationships of an entire society

• Microeconomics-examines relationship between individual consumers and producers


Factors Affecting Demand

• How strong is the need or want?• How available is the supply of products

and services to satisfy individual needs?

• What alternative products could satisfy consumer needs?


Law of Demand

• When the price of a product is increased, less will be demanded

• Demand curve-shows the relationship between price and the quantity demanded


Amount Supplied

• Profit motive

• Economic resources-natural resources, capital, equipment, and labor

• Competition


Law of Supply

• More will be supplied as prices increase.

• Supply curve-graph of the relationship between price and quantity supplied


Market Price

• Point where supply and demand for a product are equal

• Point where supply and demand curves intersect


AssignmentsIndependent Practice Activities

Compare the price of a flight from Los Angeles to

New York on 3 different airlines as well as rate

their customer service. Develop a list of seasonal demand products for a

location that has changing seasons. Conduct a student survey in the school cafeteria to

determine the most highly demanded food items.


The Law of Supply and Demand Copyright © Texas Education Agency, 2011. All rights reserved.

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Transcript of The Law of Supply and Demand Copyright © Texas Education Agency, 2011. All rights reserved.