1. INDUSTRIAL REVOLUTION
Economics!

2. Adam Smith 1723-1790 Scottish philosopher and economics
Author of the Wealth of Nations
Wealth of Nations = 1st work of modern economics
father of economics and capitalism
Sill among the most influential economists

3. Supply and Demand

4. Demand Increases
Draw a line to demonstrate demand increasing. What happens to the price when the demand increases?

5. Demand Decreases
Draw a line to show demand decreasing. What happens to price when demand decreases?

6. Supply Increases
Draw a line to show supply increasing. What happens to price when supply increases?

7. Supply Decreases
Draw a line to show supply decreasing. What happens to price when supply decreases?

8. In Economics
Direct relationship means if one increases, then the other increases.  the relationship b/w demand and price  DD (direct; demand) Inverse relationship means if one increases, then the other decreases.  the relationship b/w supply and price  IS (inverse; supply)