Supply and Demand

1. Supply and Demand Created by Michelle Woods, SIOP Writer, WCPSS

2. Supply and Demand When you hear the terms supply and demand what do you think of? What does it mean?

3. Law of Supply What is the goal of the Nike Corporation? As the price of a their shoes increase, the quantity of shoes made increases. $$$

4. Profit….Profit…Profit How does Nike maximize their profits? 2010, $130.00 Make more shoes & increase the price!! 1985, $64.99 As the price of the shoe increases the quantity made by Nike increases. = Law of Supply

5. Law of Demand As the price of a good increases the consumers demand decreases. Yikes, we can’t afford these shoes. We’ll have to buy something else. $130 $110.00

6. http://www.flightclub.com/g.php?fc=ny&c=aj&i=010423 Graph it! Air Jordan, Retro 4 Historical prices

7. Equilibrium PriceWhen the supply equals the quantity demanded. Demand “I can’t afford this” Supply $ $ $ Profit, profit, profit The supply equals the quantity demanded! Demand axis “Finally, I can buy it!” Supply axis

8. Examples With a partner determine the equilibrium price for each graph and define what equilibrium price is.

9. Supply and Demand Assignment • Choose a partner • Choose a company and product • Create a supply schedule and demand schedule then graph it. • Label the equilibrium price, supply and demand axis Share your ideas with another group