1. Where does the price of a good or service come from?

2.  Supply and Demand  Determines Prices Supply Demand

3.  You own a tomato business  This year’s harvest was great, the supply is High  You have too many tomatoes, you have to get rid of them fast  You will lower the price to get them to buy

4.  You own a tomato business  This year’s harvest was bad, the supply is Low  Tomatoes are scarce  If people want them they will fight for them  You will raise the price to make more money

5.  You own a business  People LOVE your product, the demand is High  You will Raise the Price to make more money

6.  You own a business  People HATE your product, the demand is Low  You will lower the price to get them to buy

7. HIGH SUPPLY …LOW PRICE  Silly Bands  Flip Flops  Chevy Aveo  32 inch HDtv LOW SUPPLY …HIGH PRICE  Gold Bracelets  Pair of Jordan's  Bugatti  108 inch HDtv

8. HIGH DEMAND …HIGH PRICE  iPad  Fuel Efficient Cars  Pistachios LOW DEMAND …LOW PRICE  Coby Tablet  Gas Guzzler Cars  Walnuts

10.  Supply Price Quantity Supply $10 $9 $8 $7 1 234

11.  Demand Price Quantity demand $10 $9 $8 $7 1 234

12.  Supply and Demand Price Quantity Supply demand $10 $9 $8 $7 1 234

13.  Supply and Demand Price Quantity Supply demand $10 $9 $8 $7 1 234

14.  Supply and Demand Price Quantity Supply demand $10 $9 $8 $7 1 234 Surplus You made too many 1 pizza X $9 $9 throw out on 2 extras

15.  Supply and Demand Price Quantity Supply demand $10 $9 $8 $7 1 234

16.  Supply and Demand Price Quantity Supply demand $10 $9 $8 $7 1 234 Deficit made too few 1 pizza X $7 $7 Missed out on 2 sales

17.  Supply and Demand Price Quantity Supply demand $10 $9 $8 $7 1 234 Equilibrium

18.  Supply and Demand Price Quantity Supply demand $10 $9 $8 $7 1 234 Equilibrium 2 pizza X $8 $16 perfect

19.  How many Pizza Places in Rocky Mount?  Pizza Hut  Pizza King  Little Caesar’s  Papa John’s  Domino’s  Hema’s  Frank’s  Pyramid

20.  Let’s Open a Pizza Place!  Gereau’s Pizza What happens next?

21.  Supply and Demand Price Quantity Sold Supply demand $5 $10 $15 1234 $10

22.  Supply goes up Price Quantity Sold Supply demand $5 $10 $15 1234

23.  Town Council writes a new ordinance  “All Pizza must use FRESH INGREDIENTS”  Most pizza places go out of business  Supply goes DOWN

24.  Supply goes down Price Quantity Sold Supply demand $5 $10 $15 1234

25.  Supply and Demand Price Quantity Sold Supply demand $5 $10 $15 1234

26. Pizza is Healthy

27.  Demand Goes Up Price Quantity Sold Supply demand $5 $10 $15 1234

28. Pizza is made from Humans!!!

29.  Demand goes down Price Quantity Sold Supply demand $5 $10 $15 1234