The Law of

Supply and Demand

Law of Supply and
Demand
 DEMAND
• Refers to how much QUANTITY of a
product or service is desired by buyers.
• QUANTITY demanded is the amount of
a product people are willing to buy at a
certain price.

• Demand Relationship
 DEMAND SCHEDULE
• Refers to how much QUANTITY of a
product or service is desired by buyers.
• QUANTITY demanded is the amount of
a product people are willing to buy at a
certain price.

• Demand Relationship
 SUPPLY
• How much the market can offer
• The quantity supplied refers to the
amount of a certain good producers
are willing to supply when receiving a
certain price.
• Supply Relationship
 PRICE
• The reflection of supply and demand
• If the desire for goods increases while
its availability decreases, its price rises.
• If the availability of the goods increases
and the desire of it decreases, the
price comes down.
 PRICE

• The reflection of supply and demand

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?

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 Law of Demand
• When the price of a product is
increased, less will be demanded

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 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.

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