1. ECONOMICS
SUPPLY AND DEMAND

2. Review Three fundamental economic questions? Market Economy
Command Economy
Mixed Economy

3. Review Free Enterprise System Price Competition Non-Price Competition
Freedom of Ownership
Risk
Profit
Competition
Price Competition
Non-Price Competition
Monopoly

4. Supply and Demand
Supply: “amount of goods producers are willing to make & sell”
example: 48 jackets, 20 sweatshirts, 15 tote bags
Demand: “consumers willingness & ability to buy products”
example: students wanted to buy the items above
Supply and demand determine prices and quantities of goods and services produced

5. Supply = Demand Equilibrium
Equilibrium: “when the amount of a product (supply) is equal to the amount consumers want (demand)”
Supply = Demand

6. New Hot Item (circa 1983)

7. Surplus v. Shortage
Surplus: Supply is high, Demand is low, Price is low
Shortage: Supply is low, Demand is high, Price is high

8. Theory of Supply and Demand

9. Chapter Vocabulary Notebook
Free enterprise system
Freedom of ownership
Risk
Profit
Competition
Price competition
Non-price competition
Monopoly
Supply
Demand
Equilibrium
Economy
Resources
Factors of Production
Land
Labor
Capital
Entrepreneurship
The 3 ?’s
Market Economy
Command Economy
Traditional Economy