Aim: What is the law of supply and demand? Do Now: Handout

Economic Terms DEMAND amount of product a consumer is willing to buy at a certain price

Law of Demand Consumers will buy more of a product as price goes down Consumer will buy less as prices go up

DEMAND DEMAND PRICE PRICE Law of Demand Ask yourself, would you purchase a slice of pizza for lunch if it was $1? What about $2? What about $5? As the price rises, we are less willing to purchase it.

Law of Demand $2.00 Price $ .50 100 1 Quantity Demanded

Economic Terms SUPPLY amount of product a producer is willing to sell at a certain price

Law of Supply Suppliers will be willing to sell more of a product when price goes up Suppliers will be willing to sell less of a product when price goes down

Law of Supply PRICE SUPPLY PRICE SUPPLY

Law of Supply $2.00 Price $ .50 100 1 Quantity Supplied