1. Scarcity and Supply and Demand

2. Scarcity Shortage or Lack of Resources
Principle of Scarcity: There are limited resources for satisfying unlimited wants and needs.

3. Surplus
Abundance or overage

4. Supply
Amount of goods and services producers provide at various prices

5. Demand
The amount of quantity of goods and services that consumers are willing to buy at various prices.

6. Price
The amount of money given or asked for when goods and services are bought and sold
Price is determined through the interactions of
supply and demand

7. The Law of Supply and Demand
When demand is high and supply is low
the price goes up
When demand is low and supply is high
the prices goes down

8. Check for Understanding
Work with a partner and search the Internet for a current event article that discusses a product or service that is in high demand or scarce and how price is impacted by the demand.