The Law of Supply and Demand Copyright © Texas Education Agency, All rights reserved.

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Economics and Consumer Demand Macroeconomics-studies the economic behavior and relationships of an entire society Microeconomics-examines relationship between individual consumers and producers Copyright © Texas Education Agency, All rights reserved.

Factors Affecting Demand How strong is the need or want? How available is the supply of products and services to satisfy individual needs? What alternative products could satisfy consumer needs? Copyright © Texas Education Agency, All rights reserved.

Law of Demand When the price of a product is increased, less will be demanded Demand curve-shows the relationship between price and the quantity demanded Copyright © Texas Education Agency, All rights reserved.

Amount Supplied Profit motive Economic resources-natural resources, capital, equipment, and labor Competition Copyright © Texas Education Agency, All rights reserved.

Law of Supply More will be supplied as prices increase. Supply curve-graph of the relationship between price and quantity supplied Copyright © Texas Education Agency, All rights reserved.

Market Price Point where supply and demand for a product are equal Point where supply and demand curves intersect Copyright © Texas Education Agency, All rights reserved.

Assignments Independent Practice Activities  Compare the price of a flight from Los Angeles to New York on 3 different airlines as well as rate their customer service.  Develop a list of seasonal demand products for a location that has changing seasons.  Conduct a student survey in the school cafeteria to determine the most highly demanded food items. Copyright © Texas Education Agency, All rights reserved.