Law of Supply and Demand (2).ppt
Download
Report
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.