1. The Law of Supply and Demand Copyright © Texas Education Agency, 2011. All rights reserved.

2. Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Copyright © Texas Education Agency, 2011. All rights reserved.

3. Economics and Consumer Demand Macroeconomics-studies the economic behavior and relationships of an entire society Microeconomics-examines relationship between individual consumers and producers Copyright © Texas Education Agency, 2011. All rights reserved.

4. Factors Affecting Demand How strong is the need or want? How available is the supply of products and services to satisfy individual needs? What alternative products could satisfy consumer needs? Copyright © Texas Education Agency, 2011. All rights reserved.

5. Law of Demand When the price of a product is increased, less will be demanded Demand curve-shows the relationship between price and the quantity demanded Copyright © Texas Education Agency, 2011. All rights reserved.

6. Amount Supplied Profit motive Economic resources-natural resources, capital, equipment, and labor Competition Copyright © Texas Education Agency, 2011. All rights reserved.

7. Law of Supply More will be supplied as prices increase. Supply curve-graph of the relationship between price and quantity supplied Copyright © Texas Education Agency, 2011. All rights reserved.

8. Market Price Point where supply and demand for a product are equal Point where supply and demand curves intersect Copyright © Texas Education Agency, 2011. All rights reserved.

9. Assignments Independent Practice Activities  Compare the price of a flight from Los Angeles to New York on 3 different airlines as well as rate their customer service.  Develop a list of seasonal demand products for a location that has changing seasons.  Conduct a student survey in the school cafeteria to determine the most highly demanded food items. Copyright © Texas Education Agency, 2011. All rights reserved.