2­3 Supply and Demand.notebook
September 25, 2015
Bellwork 9-25-15
Teach a parrot the terms "supply and demand" and you've got an economist.
Thomas Carlyle, Philosopher
1. How do manufacturers decide the quantity of a product
they will produce?
2. Do you know of any products that are difficult to find
because stores do not always have them in stock?
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2­3 Supply and Demand.notebook
2‐3 September 25, 2015
SUPPLY AND DEMAND
OBJECTIVES
Understand the slopes of the supply and demand curves. Find points of equilibrium. 2
2­3 Supply and Demand.notebook
September 25, 2015
Key Terms
• widget -a new unnamed product
• function -a unique relationship between
the range and domain
• demand function
-relates the quantity of a
product to its price
• demand -the
• supply
quantity the consumers want
-the quantity of items
available to be sold
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2­3 Supply and Demand.notebook
September 25, 2015
Key Terms
• wholesale price -the price the manufacturer charges the retailer
• markup -the amount retailer add onto the wholesale price of an item
• retail price -the price for which retailers sell an item
• equilibrium -where the functions of supply and demand
• shift -a movement, or change, of a demand curve
intersect
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2­3 Supply and Demand.notebook
September 25, 2015
Example 1
The Wacky Widget Company sells widgets for $2.00 each wholesale. A local store has a markup of $1.59. What is the retail price?
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2­3 Supply and Demand.notebook
September 25, 2015
CHECK YOUR UNDERSTANDING
The wholesale price of an item is x dollars. The retail price is r dollars. Express the markup algebraically.
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2­3 Supply and Demand.notebook
September 25, 2015
Example 2
The Robear Corporation sells teddy bears at a wholesale price of $23.00. If a store marks this up 110%, what is the retail price?
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2­3 Supply and Demand.notebook
September 25, 2015
CHECK YOUR UNDERSTANDING
A banner company sells 5‐foot banners to retailers for x dollars. The St. James Sign Shop marks them up 90%. Express the retail price at the St. James store algebraically. 8
2­3 Supply and Demand.notebook
September 25, 2015
Homework:
Page 78, #'s 1-5
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