Supply
 Amount of goods and services producers are willing to
make and sell
Demand
 Consumers willingness and ability to buy goods and
services
Price
 The amount of money given or asked for when goods
and services are bought and sold (i.e. exchange)
 Price is determined through the interactions of
supply and demand
The Law of Supply and Demand
 When supply is low and demand is high,
the price goes up
SCARCITY
 When supply is high and demand is low,
the prices goes down
SURPLUS
Scarcity
 Shortage or Lack of Resources
 Principle of Scarcity: There are limited resources for
satisfying unlimited wants and needs.
Surplus
 Abundance or overage
Activity
 Students will apply their knowledge of
Supply/Demand and Scarcity/Surplus to a Hot Holiday
Toys project