Unit 1: Business
Fundamentals
Chapter 1: Economic Basics
Chapter 1: Economic Basics
Demand, Supply & Price
What is Demand?
Demand – the willingness and ability of buyers to purchase a good or service.
Law of Demand
•
When prices  decrease consumers buy more and demand goes up .
•
When prices  increase consumers buy less; demand goes down .
Chapter 1: Economic Basics
Demand, Supply & Price
Factors that can increase /decrease demand:
•
Amount of supply
•
Accessibility
•
Changes in population
•
Changes in consumer income
•
Changes in consumer taste
•
Changes in future expectations
•
Prices of similar goods
Chapter 1: Economic Basics
Demand, Supply & Price
Break into groups of two and discuss the below questions. We will regroup in 10
minutes. Write your answers on your notes sheet.
Questions for you:

What are some goods that you have a high demand for?

What determines what you buy?

Do you buy name brands or store brands?

Break into groups of two and discuss, and regroup in 5 minutes. Write your
answers on your notes sheet.
Chapter 1: Economic Basics
Demand, Supply & Price
Demand Schedule:
Chapter 1: Economic Basics
Demand, Supply & Price
What is Supply?
Supply – The willingness and ability of sellers to produce and offer to sell a good
or service.
Law of Supply
The tendency for suppliers to offer more of a good if the price is higher.
Chapter 1: Economic Basics
Demand, Supply & Price

Production cost
Technology
 Changes in price
 The number of competitors

Chapter 1: Economic Basics
Demand, Supply & Price
The Supply Schedule: