Do Now: Watch Bill Cosby Economics 101 video.

Economics 101 Economics- relating to the process or system by which goods and services are produced, sold, and bought. Capitalism-an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state. The United States follows capitalism, the government does not control businesses Video: Cosby Economics 101

Supply and Demand Supply-The total amount of a good or service available for purchase. Demand- The willingness and ability of the people within a market area to purchase particular amounts of goods or services. The Law of Supply and Demand-The price of an item will go down if the supply increases or if the demand for the item decreases. The price of an item will go up if the supply decreases or if the demand for the item increases.

Supply and Demand

Supply and demand: The Dance. eo/news/economy/2014/10 /31/we-the-economy- supply-and-dance- man.cnnmoney/ How would you explain the concept of supply and demand using the cane in “The Dance” video.

CNN: “The Dance” Task: Watch “The Dance” video and with your group answer the following questions. Why were the business owners able to make a profit on the cane? What can the business owner do to ensure that the canes are consistently distributed to consumers?

Essential Question How does supply and demand affect the cost of items we want to purchase?

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