February 26, 2013 Supply and demand

Economics Deals with the production, consumption, and distribution of goods and services.

Economic systems Are the way in which a society organizes the production, consumption, and distribution of goods and services.

Consumers Are the people that are using the goods and services.

Demand The wants and the needs of the consumers for the goods and services.

Producers Are those who create the goods and services.

Supply The goods and services created by producers.

Law of demand As the price goes up, the demand goes down. As the price goes down, the demand goes up.

Law of supply The higher the price the more the producers will try to sell because the good or service is generating higher revenue.

Scarcity Some of the things people need are unlimited. Most resources that people need and want are limited. List three natural resources that are scarce.

Factors of production Land Labour Capital

For the rest of class… Read article on chopsticks and answer questions. When finished review pages 210-211 on supply and demand. Respond to one of the two critical thinking challenges.