Transcript Law of Supply and Demand (2).ppt

Law of Supply and
Demand
Page: 144
Summarized as follows:
 High
Quantity Demand = High Prices
 Low
Quantity Demand = Low Prices
 High
Quantity Supplied = Low Prices
 Low
Quantity Supplied = High Prices
High quantity demand= high prices
Ex: If lots of people want to buy an new
iPhone 6 for x-mas then they can sell the
phones at a high price.
Low Quantity Demanded = Low Process
 After
X-mas not as many people want the
new iPhone 6 so they go on sale for a
lower price
High Quantity Supplied= Low
Prices
 Other
retailers start to sell the new iPhone
6 so there is a large quantity of them
available so the price will probably go
down.
Low Quantity Supplied= High
Prices
 After
a while the price drops and retailers
have less iPhones in stock.
 Eventually
people break or lose there
phones and will need new ones and will
price will go back up
 CYCLE
REPEATS!!!
Activity
 Provide
an example of each part of the
“Law of Supply and Demand”
 Use
terms: Consumer and Producer in
your examples.