Learning Target #5 I can explain how the prices of goods and services are determined by supply and demand.

SUPPLY = how much or how many of a good or service is available DEMAND =how much people want a good or service how much people are willing to pay for the good or service

Right click and choose “Open hyperlink” Charlie and the Chocolate Factory clip It’s okay if you don’t have headphones. The clip has subtitles so you can follow along if you don’t have sound on your computer.

 How did the Willy Wonka golden ticket contest affect the demand for Wonka chocolate bars?  Think about your answer before going to the next slide.

 The demand for Wonka candy bars increased dramatically, didn’t it? People all around the world were trying to get their hands on as many bars as possible.  How does this huge demand for Wonka candy bars affect the supply of Wonka candy bars?  Think about your answer before going to the next slide.

 Remember that an increase in demand typically results in a decrease in supply?  Because people were buying all of the Wonka bars, the supply decreased. There were fewer Wonka bars available to purchase.

 At the end of the clip, 2 out of the 5 golden tickets have been found.  What do you think will happen to the supply of Wonka chocolate bars as the hunt for a golden ticket continues? Will there be a surplus or scarcity of Wonka chocolate bars?  Think about your answer before going to the next slide.

 Based on the clip, you should be able to infer that the demand for Wonka candy bars (and those golden tickets!) will increase. People will want to be one of the 5 special people that are allowed to go to the factory.  As people buy all of the Wonka bars, there will be fewer of them available, leading to a scarcity of bars. A scarcity happens when the supply is not big enough to meet the demand.

 When all of the golden tickets have been found, what do you think will happen to the demand for Wonka candy bars?  Increase  Decrease  Stay the same  Think about your answer before going to the next slide.

 If there are no more golden tickets, Wonka bars aren’t so special anymore. This would probably cause the demand to decrease, wouldn’t it?  What if the Wonka company didn’t plan for this and continued to make lots and lots of Wonka bars? Would this lead to a surplus or scarcity?  Think about your answer before going to the next slide.

 If the Wonka company continued to make lots and lots of chocolate bars, despite the decrease in demand, there would probably be a lot of extra chocolate bars in the stores.  We know that the result of having more than enough of a supply to meet the demand is called a surplus. A surplus means there is too much, too many, or extra of the supply.

 To check off learning target #5, you should be able to explain:  What is SCARCITY?What is SURPLUS?  High demand = Decrease in supply  Low supply = increase in demand  Notice that supply and demand are usually opposites? SUPPLYDEMAND HighLow LowHigh