Supply & Demand

Cline’s Candy Store

Supply & Demand Supply: The total amount of a good or service available for purchase by consumers. Demand: A consumer’s desire and willingness to pay for a good or service.

Supply & Demand Supply Goes Up and Demand Goes Down – Price = Supply Goes Down and Demand Goes Up – Price = Supply Goes Up and Demand stays the same – Price = Supply Stays the Same and Demand goes up – Price = Supply and Demand Stay the Same – Price =

Supply and Demand What happens when supply is high? What happens when supply is low? What happens when supply and demand are the same?

Supply and Demand Equilibrium When supply and demand of a product are the same Putting it another way, it is when the price of the good is equal to the quantity that is available.

Supply & Demand Video https://www.youtube.com/watch?v=Ng3XHPdexNM

Economics Scarcity

Core Content and Learning Targets SS-08-3.1.1 Students will explain and give examples of how scarcity required individuals, groups and the government in the United States prior to Reconstruction to make decisions about how productive resources (natural resources, human resources, capital goods) were used. I can explain what scarcity is. I can explain how scarcity requires decisions about how to use productive resources (natural resources, human resources, capital goods) for: Individuals, Groups, Government I can give examples of how scarcity requires decisions about how to use productive resources (natural resources, human resources, capital goods) for: Individuals, Groups, Government

What is Scarcity? Define scarcity: The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently.

What types of things are scarce? Seasonally Scarce: Fruits and Vegetables Types of Clothing Inherently (always) Scarce: Time Natural Resources Land Oil Other reasons goods and services are scarce?

BP Oil Spill What happened? Is oil scarce? What type of decisions do governments have to make because of oil’s scarcity? Because of the oil spill what types of decisions did BP have to make related to scarcity? The decision to take valuable productive resources (capital and human) and use them to clean the spill instead of using these same resources for increased production of oil.

Homework Write a song defining scarcity to someone that has no idea what it means. The song should be written to a tune you already know. Example: Oh, Scarcity (Tune: Oh, Christmas Tree) Oh, scarcity! Oh, scarcity! We can't have all the things we want We cannot have it all. We really want a lot of stuff. But sometimes there's just not enough.