1. Supply and Demand Objectives
Will have definitions of supply and demand terms.
Will have defintions of equilibrium points, surplus, and shortages.
Will be able to apply the terms in examples.

2. Motivation Auction off a soda at various prices.
Discuss the relationship between the price and the quantity demanded.

3. a listing of the quantities that would be purchased at various prices.
Demand Schedule
a listing of the quantities that would be purchased at various prices.

4. Demand Curve
a graph illustrating the relationship between the price and the quantity purchased at each price.

5. Demand
the quantity of goods and services that consumers are willing and able to purchase at various prices.

6. Quantity Demand
the quantity of goods and services that consumers are willing and able to purchase at one given price.

7. Law of Demand
As the price increases, the quantity demand decreases, OR as the price decreases, the quantity demand increases.

8. Diminishing Marginal Utility
The principle that as additional units of a product are consumed during a given time period, the additional satisfaction decreases.

9. Diminishing Marginal Utility

10. Application
Work or Play? Handout.

11. a listing of the quantities that would be supplied at various prices.
Supply Schedule
a listing of the quantities that would be supplied at various prices.

12. Supply Curve
a graph illustrating the relationship between the price and the quantity supplied at each price.

13. Supply
the quantity of goods and services that a firm is willing and able to make available for sale at various prices.

14. Quantity Supply
the quantity of goods and services that a firm is willing and able to make available for sale at one given price.

15. Law of Supply
As the price increases, the quantity supply increases, OR as the price decreases, the quantity supply decreases.

16. Equilibrium Point
The price (equilibrium price) at which the quantity demanded equals the quantity supplied (equilibrium quantity).

17. Shortage
the condition in which the quantity demanded is greater than the quantity supplied at a given price.

18. Surplus
the condition in which the quantity supplied is greater than the quantity demanded at a given price.