(Cattle Supply and Demand)

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Presentation transcript:

(Cattle Supply and Demand)

The Laws of Supply and Demand People will pay more for something they want if there is a low supply. Prices will be low when merchants have more product than they can sell.

Prices and Supply/Demand Supply is Low = Prices are High Supply is High = Prices are Low

How do Laws of Supply and Demand Apply to Cattle Drives? The Problem: There were a lot of unclaimed cattle in Texas after the Civil War. The selling price of cattle in Texas was very low (about $4-$8)

But…….. Cattle could sell for $30 - $40 in the North (Kansas and Wyoming).

High Prices $$$$ Not many cattle Low Prices $ Lots of cattle

So, if you were a cow owner, what would you do?

You would find a way to move the cattle to the North! Right! You would find a way to move the cattle to the North!

That’s why Cattle Trails (The laws of supply and demand) were started! (The laws of supply and demand)

The only way to move the cattle was to walk them from Texas to a railhead (railroad station). There were not many railheads at that point, so cattle had to travel long distances to get to the market where they could be sold for the most profit. These walking/riding paths became known as cattle trails. Two of the most famous cattle trails were the Chisholm Trail and The Great Western Cattle Trail.

Once cattle were sold for a large profit, the cowboys returned to Texas to prepare for the next cattle drive!