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Created by Michelle Woods, SIOP Writer, WCPSS
Supply and Demand Notes: You will need sound and the ability to play media player or connect to the internet for slide #1 You will also need the notes document so students can take notes while going through the PP and the Nike Retro Activity . There is also o Created by Michelle Woods, SIOP Writer, WCPSS
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Supply and Demand When you hear the terms supply and demand what do you think of? What does it mean? Have a class discussion.
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Law of Supply What is the goal of the Nike Corporation? $$$ The goal is to make profit. How do they make profit? Hyperlink the Jordan or use the media file in the corner. Go to the Nike Pure J video. Why was this shoe released in September 2010? Why not February or March? (possible reason-back to school, more buyers) Why are there so many Jordans? (profit- able to keep the price high so more profit) As the price of a their shoes increase, the quantity of shoes made increases.
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Profit….Profit…Profit
How does Nike maximize their profits? 2010, $130.00 Make more shoes & increase the price!! 1985, $64.99 You can have a discussion on the other Jordan Brand Shoes and how the price for some special release Jordan’s are upwards to $ Discuss why Nike charges these prices and how the law of supply drives the prices. As the price of the shoe increases the quantity made by Nike increases. = Law of Supply
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As the price of a good increases the consumers demand decreases.
Law of Demand As the price of a good increases the consumers demand decreases. Yikes, we can’t afford these shoes. We’ll have to buy something else. $130 Talk to students about new products that come out, but they are unable to afford. Revisit the concept of tradeoffs in your discussion. $110.00
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Air Jordan, Retro 4 Historical prices
Graph it! Air Jordan, Retro 4 Historical prices Use the handout provided in the LG that has discussion questions for this slide. This slide/handout shows how the demand for Jordan Retro 4 changes based on prices.
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Equilibrium Price When the supply equals the quantity demanded.
“I can’t afford this” Supply $ $ $ Profit, profit, profit The supply equals the quantity demanded! Demand axis “Finally, I can buy it!” Point out the different parts of the supply and demand graph. Supply axis
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Examples With a partner determine the equilibrium price for each graph and define what equilibrium price is. #1 $3 #2 $1.50
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Supply and Demand Assignment
Choose a partner Choose a company and product Create a supply schedule and demand schedule then graph it. Label the equilibrium price, supply and demand axis Do an example for the class. Think of a product and walk them through the process before giving them the assignment to do in pairs. Share your ideas with another group
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