Marketing I
Supply and Demand
Supply: “amount of goods producers are willing to
make & sell”
 example: 48 jackets, 20 sweatshirts, 15 tote bags
Demand: “consumers willingness & ability to buy
products”
 example: students wanted to buy the items above
 Supply and demand determine prices and quantities of
goods and services produced
Equilibrium
 Equilibrium: “when the amount of a product (supply)
is equal to the amount consumers want (demand)”
Supply = Demand
Theory of Supply and Demand
 When supply is HIGH and demand is LOW, the price
will be LOW
 When demand is HIGH and supply is LOW, the price
will be HIGH
Surplus v. Shortage
 Surplus: Supply is high, Demand is low, Price is low
 Shortage: Supply is low, Demand is high, Price is high
Activity
 Students are to apply their knowledge of the Law of
Supply & Demand to any popular product today
 Create the following 8-slide PowerPoint:
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Cover Slide
Agenda
Select Product (include picture)
Brand
Marketing Mix
Apply Law of Supply & Demand (how it affects price)
Shortage v. Surplus
Conclusion
 Email PPT to Ms. VanDyke (hvandyke@lcps.org)