1. Supply and Demand

2. Supply and Demand Supply – amount of goods/services available to buy
Demand – the amount of a good/service consumers are willing to buy

3. Supply and Demand Curve

4. Demand
The quantity of a good or service that consumers are willing and able to but at a specific price
Every consumer has different demands
As the price of a good or service increases, the demand will drop
The opposite is also true

5. Conditions that create demand
Awareness of product/service
Ample supply
Reasonable and competitive prices
Accessibility

6. Factors that Affect Demand
Change in consumer income
Change in consumer tastes
Change in the expectations of future conditions
Change in population

7. Supply
The quantity of a good or service that businesses are willing and able to provide within a range of prices people are willing to pay
As the prices increase, suppliers are more willing to offer more products/services

8. Conditions that affect supply
A change in the number of producers of the product/service
The price of the related goods
A change in technology
A change in expectations
A change in the costs of production

9. Price Determined by many factors, including supply and demand
Prices tend to fluctuate because demand and supply are constantly changing
Price is also influenced by the cost of producing the good or service
Competition also influences price