Transcript Supply and demand with Willy Wonka

Learning Target #5
I can explain how the prices of goods and
services are determined by supply and
demand.
SUPPLY = how much or how many of a good or
service is available
DEMAND =
service
how much people want a good or
how much people are willing to
pay for the good or service
Right click and choose “Open hyperlink”
Charlie and the Chocolate Factory clip
It’s okay if you don’t have headphones. The
clip has subtitles so you can follow along if you
don’t have sound on your computer.
 How
did the Willy Wonka golden ticket
contest affect the demand for Wonka
chocolate bars?
 Think
about your answer before going to the
next slide.
 The
demand for Wonka candy bars increased
dramatically, didn’t it? People all around the
world were trying to get their hands on as
many bars as possible.
 How
does this huge demand for Wonka candy
bars affect the supply of Wonka candy bars?
 Think
about your answer before going to the
next slide.
 Remember
that an increase in demand
typically results in a decrease in supply?
 Because
people were buying all of the Wonka
bars, the supply decreased. There were
fewer Wonka bars available to purchase.
 At
the end of the clip, 2 out of the 5 golden
tickets have been found.
 What
do you think will happen to the supply
of Wonka chocolate bars as the hunt for a
golden ticket continues? Will there be a
surplus or scarcity of Wonka chocolate bars?
 Think
about your answer before going to the
next slide.
 Based
on the clip, you should be able to infer
that the demand for Wonka candy bars (and
those golden tickets!) will increase. People
will want to be one of the 5 special people
that are allowed to go to the factory.
 As
people buy all of the Wonka bars, there
will be fewer of them available, leading to a
scarcity of bars. A scarcity happens when
the supply is not big enough to meet the
demand.
 When
all of the golden tickets have been
found, what do you think will happen to the
demand for Wonka candy bars?
 Increase
 Decrease
 Stay
the same
 Think
about your answer before going to the
next slide.
 If
there are no more golden tickets, Wonka
bars aren’t so special anymore. This would
probably cause the demand to decrease,
wouldn’t it?
 What if the Wonka company didn’t plan for
this and continued to make lots and lots of
Wonka bars? Would this lead to a surplus or
scarcity?
 Think
about your answer before going to the
next slide.
 If
the Wonka company continued to make
lots and lots of chocolate bars, despite the
decrease in demand, there would probably
be a lot of extra chocolate bars in the stores.
 We
know that the result of having more than
enough of a supply to meet the demand is
called a surplus. A surplus means there is too
much, too many, or extra of the supply.
 To
check off learning target #5, you should
be able to explain:

What is SCARCITY?
What is SURPLUS?
High demand = Decrease in supply
 Low supply = increase in demand
 Notice that supply and demand are usually
opposites?
SUPPLY
DEMAND
High
Low
Low
High
