Scarcity
 Shortage or Lack of Resources
 Principle of Scarcity: There are limited resources for
satisfying unlimited wants and needs.
Surplus
 Abundance or overage
Supply
 Amount of goods and services producers provide at
various prices
Demand
 The amount of quantity of goods and services that
consumers are willing to buy at various prices.
Price
 The amount of money given or asked for when goods
and services are bought and sold
 Price is determined through the interactions of
supply and demand
The Law of Supply and Demand
 When demand is high and supply is low
the price goes up
 When demand is low and supply is high
the prices goes down
Check for Understanding
 Work with a partner and search the Internet for a
current event article that discusses a product or service
that is in high demand or scarce and how price is
impacted by the demand.