The document discusses the concepts of supply and demand in economics. It defines price as the amount a good or service will sell for in a market. Supply is how much a producer is willing to produce at a given price level. Demand is an individual's need or want for a good at a given price. The law of demand states that as price decreases, demand increases, and the law of supply says that as price increases, supply increases.

1. Supply
and
Demand

2. Price
Amount at which a good/service will be
sold in a market

3. Supply
How much of a good/service a producer is
willing and able to produce at a given price
-Seller’s Market

4. Supply
Dollars
$40.00
$30.00
$20.00
$10.00
100 200 300 400 500 Quantity

5. Demand
An individual’s need/want for a
good/service at a given price
-Buyer’s Market

6. Demand
Dollars
$40.00
$30.00
$20.00
$10.00
100 200 300 400 500 Quantity

7. Law of Demand
As the price of a good/service
decreases, the demand of that
good/service will increase.

8. Law of Supply
As the price of a good/service
increase/decreases, the supply of that
good/service will also increase/decrease.