Scarcity and Supply and Demand

Scarcity Shortage or Lack of Resources Principle of Scarcity: There are limited resources for satisfying unlimited wants and needs.

Surplus Abundance or overage

Supply Amount of goods and services producers provide at various prices

Demand The amount of quantity of goods and services that consumers are willing to buy at various prices.

Price The amount of money given or asked for when goods and services are bought and sold Price is determined through the interactions of supply and demand

The Law of Supply and Demand When demand is high and supply is low the price goes up When demand is low and supply is high the prices goes down

Check for Understanding Work with a partner and search the Internet for a current event article that discusses a product or service that is in high demand or scarce and how price is impacted by the demand.